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Effects of Oil Price, External Debt and Population on the Government Investment in Syria

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  • Adel Shakeeb Mohsen

Abstract

This study attempts to investigate the effect of oil price, external debt and population on the government investment in Syria over the period 1970-2010. The Johansen cointegration test showed that oil price, external debt and population have a positive and significant long run relationship with government investment. The Granger causality test indicates bidirectional long-run causality relationships between oil price, external debt, population, and government investment. There are also unidirectional short-run causality relationships running from oil price and population to government investment, and bidirectional short-run causality relationship between external debt and government investment. The study result indicates that, external debt have the biggest effect on the government investment, as well oil price and population can play an important role in supporting the government investment in the country.

Suggested Citation

  • Adel Shakeeb Mohsen, 2015. "Effects of Oil Price, External Debt and Population on the Government Investment in Syria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(1), pages 118-129, March.
  • Handle: RePEc:khe:scajes:v:1:y:2015:i:1:p:118-129
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    More about this item

    Keywords

    Syria; government investment; oil price; external debt; population; VAR;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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