The Causality between Capital Formation and Economic Growth in MENA Region

• Autorzy: Mohsen Mehrara , Maysam Musai
• Języki publikacji: EN

Abstrakty

EN

This paper investigates the causal relationship between gross domestic investment (INV) and GDP for Middle East and North Africa (MENA) region countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results show a strong causality from economic growth to investment in these countries. Yet, investment does not have any significant effects on GDP in short- and long-run. It means that it is the GDP that drives investment in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher investment. According to the results, decision makings should be employed to achieve sustainable growth through higher productivity and substantially enlarging the economic base diversification in the future. (original abstract)

Słowa kluczowe

EN

Investment; Gross domestic product (GDP); Economic growth; Empirical researches

PL

Inwestycje; Produkt krajowy brutto (PKB); Wzrost gospodarczy; Badania empiryczne

• Czasopismo: International Letters of Social and Humanistic Sciences (ILSHS)
• Rocznik: 2013
• Tom: 8
• Strony: 1--7

Twórcy

autor

Mohsen Mehrara

• University of Tehran, Iran

autor

Maysam Musai

• University of Tehran, Iran

Bibliografia

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