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Long Run Multiple Causality Measure on Economic Growth

Author

Listed:
  • Ciprian ȘIPOȘ

    (Faculty of Economics and Business Administration West University of Timisoara)

  • Ioana VIAȘU

    (Faculty of Economics and Business Administration West University of Timisoara)

Abstract

In a recent published paper, the second author studied the problem of causality between economic growth and investment in education, by using the method developed by Dufour and Taamouti. In this paper we intend to extend this analysis by considering the case of three variables: gross domestic product, investment in education, and investment in physical capital, all variables being considered as per-capita quantities. We try to highlight the explicit form of a VAR model, to emphasize the evolutionary dynamics and to make a comparative study of different types of economies: Germany and France on the one hand and Romania on the other. The main aim of this paper is to determine the measure of causality effect of the two types of investments on economic growth. The results largely confirm the theoretical assumptions of the endogenous models.

Suggested Citation

  • Ciprian ȘIPOȘ & Ioana VIAȘU, 2017. "Long Run Multiple Causality Measure on Economic Growth," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(1), pages 117-134.
    • Handle: RePEc:cys:ecocyb:v:50:y:2017:i:1:p:117-134
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    References listed on IDEAS

    as
    1. Jean-Marie Dufour & Eric Renault, 1998. "Short Run and Long Run Causality in Time Series: Theory," Econometrica, Econometric Society, vol. 66(5), pages 1099-1126, September.
    2. Stern, David I. & Enflo, Kerstin, 2013. "Causality between energy and output in the long-run," Energy Economics, Elsevier, vol. 39(C), pages 135-146.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    causality measures; economic growth; vector autoregressive model.;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • 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
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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