I am doing a research on the relation ship between FDI and GDP between 1980-2015 in one country. The values used are FDI stock and real gdp.
Also, using the optimal lag structure which is 2, I ran the Johansen co-integration test which says, I could not reject the hypothesis according to the p-value. The p-value of none is 0.1851 and p-value for at most 1 is 0.5069
Finally, I ran the granger causality test and get these results. I am quite confused here because according to what I learnt if we reject co-integration test, I should not have any rejection in the granger causality test also.
Real GDP does not Granger cause FDI Stock= 0.0011
FDI Stock does not Granger cause Real GDP= 0.0002
I also ran the ADF Test using first difference and it says I don't have any unit root. I don't know if these results would be acceptable or not.
Kindly advise me and h