Özet:

This study explores the causal relationships between foreign direct investments, economic growth and trade openness in Balkan States for 1996-2017 period by using the secondgeneration panel data methods under cross-sectional dependence. According to cross-sectional dependence and homogeneity tests, models are cross-sectionally dependent and slope coefficients are heterogeneous. Causal relationships between variables have been examined by using Konya 2006 panel data causality approach that allows cross-sectional dependence and obtain country-specific results. The results can be summarized as follows: i There exist a weak causal relationship between foreign direct investment and real income. ii There exist a weak causal relationship between trade openness and real income

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