Importance of international trade and foreign direct investment for economic growth

This paper analyzes the combined importance of foreign direct investment and trade on a group of 75 countries, comprising OECD, BRICS, CIVETS and low-income economies. The data used in this study covers the period 1995-2013. By means of panel estimations, I record a positive impact between trade and growth, while I find no evidence suggesting a link between FDI on economic development. When testing the combined impact of foreign direct investment and trade on growth, I was unable to find statistical evidence supporting such links.