The Main Determinants of Economic Growth : An Empirical Investigation with Granger Causality Analysis for Greece

Nikolaos Dritsakis, Erotokritos Varelas, Antonios Adamopoulos
European Research Studies Journal, Volume IX, Issue 3-4, 47-58, 2006
EOI: 10.11214/thalassinos.09.02.004

Abstract:

This paper examines empirically the causal relationship among exports, gross capital formation, foreign direct investments and economic growth using a multivariate autoregressive Var model for Greece over the period 1960-2002. The results of cointegration test suggested that there is only one cointegrated vector between the examined variables, while Granger causality tests showed that there is a unidirectional causal relationship between exports and gross fixed capital formation and also there is a unidirectional causal relationship between foreign direct investments and economic growth.


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