Causality between Domestic Investment and Economic Growth in Arab Countries

Sayef Bakari and Malek El Weriemmi

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this investigation is to examine the nexus between domestic investment and economic growth in Arab countries. To attempt our goal, we used annual data for the period 1990 – 2020 and Vector Error Correction Model. Empirical analysis indicates that there is no relationship between domestic investment and economic growth in the long run. However, we find a bidirectional causality between domestic investment and economic growth in the short run. These results provide evidence that domestic investment is necessary in Arab countries’ economy and is presented as an engine of growth since they cause economic growth in the short term. But they are not carried out and treated with a solid and fair manner, which offer new insights into Arabe countries’ investment policy for promoting economic growth.

Keywords: Domestic Investment; Economic Growth; VECM; Arab Countries (search for similar items in EconPapers)
JEL-codes: E2 O11 O20 O47 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ara, nep-dem, nep-gro and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Working Paper: Causality between Domestic Investment and Economic Growth in Arab Countries (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:113079

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