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The Effect of Macroeconomic Variables on Economic Growth: A Cross-Country Study

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Beyond Traditional Probabilistic Methods in Economics (ECONVN 2019)

Part of the book series: Studies in Computational Intelligence ((SCI,volume 809))

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Abstract

This study examines the effect exacted by macroeconomic variables on the economic growth for selected 68 developing countries in a panel framework. Panel data analysis was conducted for the period 1996 to 2016, in order to examine the effect of macroeconomic variables on economic growth. The effect of macroeconomic variables was evaluated in a dynamic framework using system GMM (System - Generalized Method of Moments). The main findings of this paper indicated that high level domestic investment, labour and trade openess have positive and significant effect on economic growth. In contrast, inflation, money supply and interest rate have negative effect on growth in developing countries.

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Author information

Authors and Affiliations

  1. Finance Faculty, Banking University HCMC, Ho Chi Minh City, Vietnam

    Dang Van Dan

  2. Accounting - Financial Banking Faculty, Binh Duong Economic and Technology University, Binh Duong, Vietnam

    Vu Duc Binh

Authors
  1. Dang Van Dan
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  2. Vu Duc Binh
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Corresponding author

Correspondence to Dang Van Dan .

Editor information

Editors and Affiliations

  1. Department of Computer Science, University of Texas at El Paso, El Paso, TX, USA

    Vladik Kreinovich

  2. Banking University HCMC, Ho Chi Minh City, Vietnam

    Nguyen Ngoc Thach

  3. Banking University HCMC, Ho Chi Minh City, Vietnam

    Nguyen Duc Trung

  4. TTC Group, Ho Chi Minh City, Vietnam

    Dang Van Thanh

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Van Dan, D., Binh, V.D. (2019). The Effect of Macroeconomic Variables on Economic Growth: A Cross-Country Study. In: Kreinovich, V., Thach, N., Trung, N., Van Thanh, D. (eds) Beyond Traditional Probabilistic Methods in Economics. ECONVN 2019. Studies in Computational Intelligence, vol 809. Springer, Cham. https://doi.org/10.1007/978-3-030-04200-4_67

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