Following that the FDI series is integrated of order one, the cointegration (long-run)
relationship between them was also established using the Johansen maximum likelihood
(ML) cointegration test run relationship between GDP and FDI for the whole sample
period . Results from the cointegration analysis are presented in Table 3 a cointegrating
relationship is found for FDI and GDP , This implies the existence of long-term causality,
whose direction is not yet clear however.
(Two time series variables are said to be cointegrated if each of the series taken
individually is non-stationary with integration of order one, i.e. I(1), while the linear
combination of the series are stationary with integration of order zero