Economic growth, exports and foreign direct investment in Least Developed Countries: A panel Granger causality analysis

► This paper investigates causality relations among real GDP, exports and FDI in LDCs. ► Growth-led export hypothesis holds true in countries rich in natural resources. ► Export-led growth hypothesis holds true in manufacturing and services exporters. ► FDI does not have a “crowding out” effect on national output in LDCs. ► FDI is trade-creating in manufacturing LDCs, while market-seeking in oil-rich LDCs.