Short-Run Effects of Investments in Construction and Equipment on GDP in Bulgaria

Vera Pirimova () and Galina Ruseva ()
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Vera Pirimova: University of National and World Economy
Galina Ruseva: "Angel Kanchev" University of Ruse

Economy and Economic Theory: Problems and Interactions, Conference Proceedings 2017, 2017, issue 1, 300-308

Abstract: The paper aims to explore the interdependence between investments and the increase of GDP in Bulgaria. In a more specific plan this paper examines the short-run effects of equipment and construction investment (expenditure on acquisition of tangible fixed assets) on economic growth in Bulgaria over the period 1970-2015. For the achievement of the basic objective has been applied the Vector Error Correction Model (VECM). As a result of the research is evidenced the bidirectional causality between equipment investments and economic growth and the unidirectional causality running from construction investments to output.

Keywords: investments; economic growth; GDP; mechanism of multiplier; VECM (search for similar items in EconPapers)
JEL-codes: A00 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vra:pr1712:y:2017:i:1:p:300-308

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