International Letters of Social and Humanistic Sciences · 2013 · 32 citations · 16 references
Social SciencesEconomicsEconometricsEconomic DevelopmentMacroeconomicsCapital FlowsCointegration AnalysisEconomic GrowthInvestmentPanel Data AnalysisPanel Data MethodsCausal HypothesesEconomic Growth DynamicsPanel Instrumental VariablesPanel Unit Root TestsSustainable Economic GrowthSustainable Growth RateSustainable Growth StrategyUnit Root Testing
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
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Testing for unit roots in heterogeneous panels
Kyung So Im, M. Hashem Pesaran, Yongcheol Shin · Journal of Econometrics · 2003 · 15K citations · Full text