FRESH EVIDENCE ON THE INVESTMENT-ECONOMIC FREEDOM-GROWTH NEXUS IN OECD MEMBER STATES
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Tarih
2019
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Varazdin Development & Entrepreneurship Agency
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
This paper aims to explore the nexus between investment, economic freedom and economic growth in the sample of 35 OECD member states in the time span 1996-2015. The empirical methodology relies on the panel VAR model. The findings of trivariate model suggest a significant negative response of GFC to EFI. Investment is however found to respond positively to the improvements in real GDP per capita. With regard to GDP it is found to respond negatively to the GFC as well as EFI. Lastly, economic freedom is found to respond negatively to GFC but positively to GDP. IRFs displaythe response of EFI to GDP to be negative only in the short-run reaching the positive value at the end of the period of interest. Similar conclusion can be drawn for the response of EFI to GFC. GDP is found to have a positive response to the EFI in both, short- and the long-term. Similar conclusion can be drawn for the response of GDP to GFC. GFC positively responds to and to GDP. This paper suggests a necessity for policy makers to support the economic freedom since it has a great potential to contribute to the both, investments and final the economic growth of the countries of interest.
Açıklama
39th International Scientific Conference on Economic and Social Development - Sustainability from an Economic and Social Perspective -- APR 29-30, 2019 -- Lisbon, PORTUGAL
Anahtar Kelimeler
economic freedom, economic growth, investment, panel VAR
Kaynak
Economic and Social Development (Esd): 39th International Scientific Conference on Economic and Social Development - Sustainability From An Economic and Social Perspective
WoS Q Değeri
N/A
