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Domestic Investment, Export, Import And Economic Growth In Brazil: An Application Of Vector Error Correction Model

Author

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  • Sayef Bakari

    (Department of Economics Sciences, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, (Tunisia))

  • Nissar Fakraoui

    (Department of Economics Sciences, Higher Institute of Companies Administration, University of Gafsa, (Tunisia))

  • Sofien Tiba

    (Faculty of Economic Sciences and Management of Sfax, University of Sfax, (Tunisia))

Abstract

This paper aims to investigate the nexus between domestic investment, exports, imports, and economic growth for the Brazilian economy during the period 1970-2017, using the VECM methodology. In the short-run, our empirical results pointed out that import, exports, and domestic investment cause economic growth. Also, economic growth causes exports. Exports, imports, and economic growth cause domestic investment. However, in the long-run, our results revealed that domestic investment and exports have a positive effect on economic growth. Also, imports have a negative effect on economic growth. The results recorded a positive impact of economic growth and imports on domestic investment. Exports have a negative effect on domestic investment. Finally, we record the absence of significant impact of economic growth, exports and domestic investment on imports, and economic growth, domestic investment, and imports on exports. Due to the importance of these aspects to the economic performance of Brazil, the policymakers are invited to orient these issues towards the sustainability facets to guarantee a sustained growth path.

Suggested Citation

  • Sayef Bakari & Nissar Fakraoui & Sofien Tiba, 2021. "Domestic Investment, Export, Import And Economic Growth In Brazil: An Application Of Vector Error Correction Model," Journal of Smart Economic Growth, , vol. 6(1), pages 31-48, Mars.
    • Handle: RePEc:seg:012016:v:6:y:2021:i:1:p:31-48
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    Cited by:

    1. Ben Yedder, Nadia & El Weriemmi, Malek & Bakari, Sayef, 2023. "The nexus between domestic investment and economic growth in MENA countries; Do Patents matter?," MPRA Paper 118174, University Library of Munich, Germany.
    2. Sayef Bakari & Sofien Tiba, 2022. "Agricultural Exports, Agricultural Imports And Economic Growth In China," Journal of Smart Economic Growth, , vol. 7(3), pages 35-61, September.
    3. Mindaugas Butkus & Diana Cibulskiene & Lina Garsviene & Janina Seputiene, 2021. "Empirical Evidence on Factors Conditioning the Turning Point of the Public Debt–Growth Relationship," Economies, MDPI, vol. 9(4), pages 1-22, December.
    4. Bakari, Sayef & Fakraoui, Nissar & Mabrouki, Mohamed, 2020. "The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru," MPRA Paper 99041, University Library of Munich, Germany.
    5. Sayef Bakari & Sofien Tiba & Nissar Fakraoui, 2019. "Does Domestic Investment Contribute To Economic Growth In Uruguay? What Did The Empirical Facts Say?," Journal of Smart Economic Growth, , vol. 4(2), pages 53-69, September.
    6. Bakari, Sayef, 2022. "The Nexus between Domestic Investment and Economic Growth in Developed Countries: Do Exports matter?," MPRA Paper 114394, University Library of Munich, Germany.
    7. Bakari, Sayef, 2024. "The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries," MPRA Paper 121643, University Library of Munich, Germany.
    8. Bakari, Sayef & El Weriemmi, Malek, 2022. "Exploring the Impact of Agricultural Investment on Economic Growth in France," MPRA Paper 113970, University Library of Munich, Germany.
    9. Najwa AKERMI & Nadia Ben YEDDER & Sayef BAKARI, 2024. "Impact of final consumption, domestic investment, exports, and imports on economic growth in Albania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(638), S), pages 231-252, Spring.
    10. Bakari, Sayef & El Weriemmi, Malek & Mabrouki, Mohamed, 2022. "The Impact of Digitalization and Trade Openness on Economic Growth: New Evidence from Richest Asian Countries," MPRA Paper 113816, University Library of Munich, Germany.
    11. El Weriemmi, Malek & Bakari, Sayef, 2024. "The Impact of CO2 Emissions, Domestic Investment and Trade Openness on Economic Growth: New Evidence from North African Countries," MPRA Paper 122152, University Library of Munich, Germany.
    12. Bakari, Sayef, 2022. "The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries," MPRA Paper 114323, University Library of Munich, Germany.
    13. Bakari, Sayef, 2022. "Relationship among Domestic Investment, Exports and Economic Growth: Evidence form the Case of Greece," MPRA Paper 114418, University Library of Munich, Germany.
    14. Nesrine Gafsi & Sayef Bakari, 2024. "Impacts of Agricultural CO2 Emissions, Agricultural Exports and Financial Development on Economic Growth: Insights from East Asia and Pacific Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 136-153, November.
    15. Deimante Blavasciunaite & Lina Garsviene & Kristina Matuzeviciute, 2020. "Trade Balance Effects on Economic Growth: Evidence from European Union Countries," Economies, MDPI, vol. 8(3), pages 1-15, July.
    16. Bolor Khurelchuluun & Liang Cao & Wenshou Yan, 2023. "The Impact of Trade Openness on Economic Growth in Landlocked Developing Countries," International Journal of Science and Business, IJSAB International, vol. 28(1), pages 84-97.
    17. Bakari, Sayef, 2021. "Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods," MPRA Paper 108785, University Library of Munich, Germany.
    18. Bakari, Sayef, 2024. "Causality between Domestic Investment and Economic Growth: New Evidence from Argentina," MPRA Paper 121799, University Library of Munich, Germany.

    More about this item

    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F1 - International Economics - - Trade
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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