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An Investigation Of Longrun Relationship Between Economic Growth, Investment And Export In Romania

Author

Listed:
  • Mester Ioana Teodora

    (University of Oradea, Faculty of Economics)

  • Simut Ramona Marinela

    (University of Oradea, Faculty of Economics)

Abstract

The objective of this study was to estimate the long-run relationship between economic growth, investment and export in Romania using trimestrial data from the National Bank of Romania as well as National Statistical Institute. The econometric methodology employed was the Cointegration and Granger Causality test. First, the stationarity properties of the data and the order of integration of the data were tested using the Augmented Dickey-Fuller (ADF) test. We found that the variables were non-stationary in levels, but stationary in first differences; that is, they are integrated of order one (I (1)). Since we used single equation model(s), the application of Johansen multivariate approach to cointegration was necessary to test for the long-run relationship among the variables. The result showed the existence of a single cointegration equation between the variables. The result of the Granger causality test shows a bidirectional relationship between investment and economic growth and also a bidirectional relationship between investment and exports but the result of the causation between export and growth was statistically insignificant.

Suggested Citation

  • Mester Ioana Teodora & Simut Ramona Marinela, 2011. "An Investigation Of Longrun Relationship Between Economic Growth, Investment And Export In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 316-321, July.
    • Handle: RePEc:ora:journl:v:1:y:2011:i:1:p:316-321
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    File URL: http://anale.steconomiceuoradea.ro/volume/2011/n1/021.pdf
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    References listed on IDEAS

    as
    1. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    2. Turan Subasat, 2002. "Does Export Promotion Increase Economic Growth? Some Cross‐Section Evidence," Development Policy Review, Overseas Development Institute, vol. 20(3), pages 333-349, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bakari, Sayef & Khalfallah, Sirine & Zidi, Ahmed, 2021. "The Determinants of Agricultural Exports: Empirical Validation for the Case of Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(3), October.

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    More about this item

    Keywords

    economic growth; investment; export; Romania; VECM model;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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