Long run and Short run Macroeconomics Determinants of Economic Growth in the USA: Cointegration and VECM Analysis

Sayef Bakari and Sofien Tiba

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to search determinants of economic growth in the USA in the long run and the short run for the period 1970 – 2016. By using co-integration analysis and Vector Error Correction Model, we make the compensation of a lot of variables that they did not include with each other before. Empirical analysis show that in the long run that Final consumption expenditure, population, domestic investment, foreign direct investment inflow, and export are the source of economic growth in the long run, however foreign direct investment outflow, military expenditure, tax revenue, and imports are not seen as a source of economic growth in the long run. In the short run, all of the variables have not any effect on economic growth.

Keywords: Macro Determinants; Economic Growth; Cointegration Analysis; VECM; USA. (search for similar items in EconPapers)
JEL-codes: E2 E22 F14 F43 O4 O47 O51 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/96618/1/MPRA_paper_96618.pdf original version (application/pdf)

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:pra:mprapa:96618

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().