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

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  • Nikolaos Dritsakis
  • Erotokritos Varelas
  • Antonios Adamopoulos

Abstract

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

Suggested Citation

  • Nikolaos Dritsakis & Erotokritos Varelas & Antonios Adamopoulos, 2006. "The Main Determinants of Economic Growth : An Empirical Investigation with Granger Causality Analysis for Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 47-58.
    • Handle: RePEc:ers:journl:v:ix:y:2006:i:3-4:p:47-58
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    References listed on IDEAS

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    2. Bakari, Sayef, 2018. "The Impact of Domestic Investment on Economic Growth New Policy Analysis from Algeria," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 3(1), pages 35-51, March.
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    6. Ramona Dumitriu & Razvan Stefanescu, 2015. "The Relationship Between Romanian Exports And Economic Growth After The Adhesion To European Union," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 17-26.
    7. Chebli Mongi & Kais Saidi, 2024. "The Impact of Corruption, Government Effectiveness, FDI, and GFC on Economic Growth: New Evidence from Global Panel of 48 Middle-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10696-10721, September.
    8. Ali Yassin Sheikh Ali & Mohamed Saney Dalmar & Ali Abdulkadir Ali, 2018. "Effects of Foreign Debt and Foreign Aid on Economic Growth in Somalia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(11), pages 1-95, November.
    9. Ashok Babubudjnauth & Boopen Seetanah, 2021. "An empirical analysis of the impacts of real exchange rate on GDP, manufacturing output and services sector in Mauritius," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1657-1669, April.
    10. Rosenkranz, Peter & Melchor, Monica, 2022. "Asia’s financial interconnectedness: Evolution, implications, and insights from past crises," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 685-707.
    11. Ali, Amjad, 2022. "Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries," MPRA Paper 116101, University Library of Munich, Germany.
    12. Chizonde, Bright, 2016. "The Macroeconomic Determinants of Economic Growth in Zambia: Do Copper prices matter?," MPRA Paper 87854, University Library of Munich, Germany.
    13. Olusola Olalekan Joshua, 2016. "The Impact of Physical and Human Capital Development on Economic Growth in Developing and Developed Countries: A Comparative Panel Data Approach," Economy, Asian Online Journal Publishing Group, vol. 3(1), pages 1-18.
    14. Antonios Adamopoulos & Athanasios Vazakidis, 2019. "A System Equation Model A Comparative Study for G-7 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 74-109, October-D.
    15. Ashima Arora & Anjala Kalsie, 2018. "Impact of US Financial Crisis on GDP of BRICS Economies: An Analysis Using Panel Data Approach," Global Business Review, International Management Institute, vol. 19(2), pages 439-454, April.
    16. Emilda Hashim* & Norimah Rambeli@ Ramli & Nurhanani Romli & Norasibah Abdul Jalil & Syazwani Mohd Bakri & Ng Woan Ron, 2018. "Determinants of Real GDP in Malaysia," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 97-103:3.
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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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