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

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

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.

Keywords

  • Economic growth
  • Developing countries
  • Macroeconomic variables

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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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