Granger Causality Between Gross Domestic Product and Economic Sectors in Developing Countries: A Panel Co-integration Approach

Sima Siami-Namini

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 5, 53-58

Abstract: The purpose of this article is to explore the causal relationship between GDP and economic sectors including agricultural, industrial, and services growth and oil price using a balanced panel data of 62 developing countries observed over the period of 1990 to 2014. The results of multiple regressions show that industrial and services value-added share of GDP and oil price are the positive influencing factor of the GDP of developing countries. In contrast, agricultural value-added share of GDP identifies as a negative influencing factor of the GDP. To examine the Granger causal relationship between variables, the vector error correction model (VECM) and Wald tests statistics are applied. The findings show a long run relationship of Granger causality between variables and show a short run bi-directional Granger causality between GDP and agriculture and service and oil price and a short run unidirectional Granger-causality from industry to GDP.

Keywords: Economic sectors; Oil price; Developing countries; Panel Co-integration; Granger-causality (search for similar items in EconPapers)
JEL-codes: C33 O1 O13 O14 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/5229/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/5229/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-05-7

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().