The Main Determinants of Economic Growth: An Empirical Investigation with Granger Causality Analysis for Greece

Abstract

This paper examines empirically the causal relationship among exports, gross
\ncapital formation, foreign direct investments and economic growth using a multivariate
\nautoregressive Var model for Greece over the period 1960-2002. The results of
\ncointegration test suggested that there is only one cointegrated vector between the
\nexamined variables, while Granger causality tests showed that there is a unidirectional
\ncausal relationship between exports and gross fixed capital formation and also there is a
\nunidirectional causal relationship between foreign direct investments and economic
\ngrowth.