This study examines the relationship between economic growth as measured by GDP per capita and foreign direct investment for Cyprus, using the methodology of Granger causality and vector auto regression (VAR). Evidence shows that there is a unidirectional Granger causation from foreign direct investment to economic growth.
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M. Feridun, 2004. Foreign Direct Investment and Economic Growth: A Causality Analysis for Cyprus, 1976-2002. Journal of Applied Sciences, 4: 654-657.
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