A Pair-Models Idea for FDI and Economic Growth in Romania

Abstract

Studying correlation between foreign direct investments (FDI) and economic growth might be as generous idea as meeting enough defaults and obstacles when put into practice. Then, the pair-models idea (Voivodas 1973) looks appropriate for such a study since determination complexities and environments of the two are the same and concomitantly acting. Actually, imagine a list of variables with concomitant time data, of which two will shift position between exogenous and endogenous. Two apparently distinct models will so result as pair-models, whereas the two variables that were presumably suspected for a significant interrelation are FDI and economic growth, due to their similarly influential environments and complexity degrees of determination. And as pair-models, the two are supposed to be symmetrical for both data used and significance. So, basically, models will be both linear, but unfortunately they won’t respect this symmetry principle in all details due to some other requirements applied.