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Output growth and investment dynamics in Finland: a panel data analysis

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  • Tahir Mahmood
  • Eatzaz Ahmad

Abstract

This study analyzes the relationship between output growth and investment in a panel of 20 regions of Finland over the period 1975–2007. This regional study uses Granger non-causality and error-correction models. The most important finding of this study is a unidirectional causality which runs from investment to output growth. The study also verifies the existence of a positive association between growth and investment for the panel of 20 regions of Finland. These findings reconcile with the capital fundamentalists. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Tahir Mahmood & Eatzaz Ahmad, 2014. "Output growth and investment dynamics in Finland: a panel data analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 777-801, November.
    • Handle: RePEc:kap:empiri:v:41:y:2014:i:4:p:777-801
    DOI: 10.1007/s10663-013-9236-9
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    More about this item

    Keywords

    Output growth; Regional productivity; Investment; Panel data; Co-integration; Error correction; O4; E1; E2; J;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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