6533b853fe1ef96bd12ad7e6
RESEARCH PRODUCT
Investments, Economic Growth and Employment: VAR Method for Romania
Voda Alina DanielaDobrota GabrielaDuguleană Lilianasubject
EntrepreneurshipHF5001-6182Social PsychologyEconomics Econometrics and Finance (miscellaneous)030209 endocrinology & metabolismeconomic growth03 medical and health sciences0302 clinical medicineMarket economyinvestmentsemploymentBusiness Management and Accounting (miscellaneous)Business030212 general & internal medicineBusinessBusiness managementdescription
Abstract Economic growth can be seen as an effect of both fiscal policies and different legislative norms applied at national and macroeconomic level. Investments are a determining factor in the evolution of socio-economic life, influencing also the employment rate. This paper aims to identify the influence of investments on economic growth and employment using the vector autoregressive model (VAR). Based on the quarterly data from Romania, between the first quarter of 2000 and the second quarter of 2018, the Granger causality test and the impulse - response function was applied to identify the effect of the investments on the sustainable development of the Romanian economy. The results revealed that investments in Romania influence the economic growth and, implicitly, the employment. In terms of impulse – response function, a negative relationship between investment and employment was identified, which may be due to the fact that the need for human resources is no longer a priority in some sectors of activity due to technology.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-08-01 | Studies in Business and Economics |