Economic Growth Determinants and Foreign Direct Investment Causality in Canada
Parviz Asheghian

Abstract
This study assesses the determinants of economic growth in Canada over time, and finds out if there is any time-series support for FDI-led growth hypothesis in Canada. To achieve these goals the study uses a model that is based on the postulates of de Mello. Employing a 33-year period of annual data, the model is estimated by using the Beach-Mackinnon technique, which corrects for autocorrelation. The estimation results suggest: (1) the major determinants of economic growth in Canada are total factor productivity, and domestic investment growth; (2) there is no time-series support for FDI-led growth hypothesis in Canada.

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