The Investment-GDP Nexus: Evidence from Middle East

The present study attempts to examine the relationship between investment and economic growth for a panel of nine Middle East countries over the 1980 to 2015 periods. For this purpose, we used panel unit root test, panel cointegration test, and Panel-VECM causality. The results of panel cointegration test support the existence of long-run relationship between investment and GDP. Furthermore, the empirical finding of panel causality test reveals the causality running in both directions in short and long runs; which support the theoretical prediction about the nexus between investment and economic growth

Keywords:

Investment , Economic Growth , Panel Causality