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Impact of foreign direct investment, money supply, exchange rate and international trade on economic growth in Sri Lanka: an econometric analysis

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dc.contributor.author Neerthana, G.
dc.contributor.author Vijayakumar, S.
dc.date.accessioned 2019-12-14T09:08:22Z
dc.date.available 2019-12-14T09:08:22Z
dc.date.issued 2019-11-27
dc.identifier.citation 9th International Symposium 2019 on “Promoting Multidisciplinary Academic Research and Innovation”. 27th - 28th November 2019. South Eastern University of Sri Lanka, University Park, Oluvil, Sri Lanka. en_US
dc.identifier.isbn 978-955-627-189-8
dc.identifier.uri http://ir.lib.seu.ac.lk/handle/123456789/4117
dc.description.abstract This study is to find out the impacts of macroeconomic variables such as foreign direct investment, money supply, international trade, and exchange rate after open economy policy and to analyze the long run relationship between these variables. The time series data of the variables such as economic growth rate, foreign direct investment, money supply, exchange rate, and international trade from 1977 – 2017 have been collected from Central Bank of Sri Lanka, World Bank Data Base, the Department of Census, and Web sites. To analyze the date, the statistical software, EVIEWS – 7 is used. Augmented Dickey Fully Test (ADF Test), multiple Regression, Multi colineartity test, Series correlation test, Johansen Test, Autocorrelation, Heteroscedasticity test are the tools used to analyze the data. All the variables used in this study are stationary. As per Model 1, foreign direct investment and money supply are significant to determine the economic growth. Accordingly, the changes by one million in foreign direct investment and money supply lead to change economic growth by 83.02 million and 70.46 million respectively. These variables influence on the economic growth by 90 percent. As per Model 2, there is a positive relationship between the dependent variable of economic growth and independent variables such as foreign direct investment, money supply, exchange rate, and international trade. These variables influence on economic growth by 93 percent. In addition, there is a long run relationship between these variables and the economic growth. en_US
dc.language.iso en_US en_US
dc.publisher South Eastern University of Sri Lanka, University Park, Oluvil, Sri Lanka en_US
dc.subject Foreign direct investment en_US
dc.subject Money supply en_US
dc.subject Exchange rate en_US
dc.subject Economic growth en_US
dc.subject Open economy en_US
dc.title Impact of foreign direct investment, money supply, exchange rate and international trade on economic growth in Sri Lanka: an econometric analysis en_US
dc.type Article en_US


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