DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?

DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?

The fundamental role of domestic investment to provide economic prosperity is very well recognized by the economic theory since the Mercantilist theory. Hence, we investigate the impact of domestic investment on economic growth for the case of the Uruguayan economy over the period 1960-2017. For thi...

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Main Authors: Sayef Bakari, Sofien Tiba, Nissar Fakraoui
Format: Article
Language:English
Published: Journal of Smart Economic Growth 2019-10-01
Series:Journal of Smart Economic Growth
Online Access:https://jseg.ro/index.php/jseg/article/view/59
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spelling doaj-17ee9dff84444540a5d81793d3f6a1de2021-01-01T17:20:23ZengJournal of Smart Economic Growth Journal of Smart Economic Growth2537-141X2019-10-0142536959DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?Sayef Bakari0Sofien Tiba1Nissar Fakraoui2Department of Economics Sciences, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, (Tunisia)Department of Economics Sciences, Faculty of Economic Sciences and Management of Sfax, University of SfaxDepartment of Economics Sciences, Higher Institute of Companies Administration, University of GafsaThe fundamental role of domestic investment to provide economic prosperity is very well recognized by the economic theory since the Mercantilist theory. Hence, we investigate the impact of domestic investment on economic growth for the case of the Uruguayan economy over the period 1960-2017. For this aim, we employ the Vector Error Correction Model (VECM). Our highlights reveal the absence of a significant impact of domestic investment on growth in the short- and long-run. Due to the marginal role of domestic investment played in the Uruguayan economy, the weak saving rate couldn’t significantly help the economy and creating wealth. Therefore, a strong saving policy is required to encourage domestic investors and reevaluate their crucial role in the economic process of Uruguay.https://jseg.ro/index.php/jseg/article/view/59
collection DOAJ
language English
format Article
sources DOAJ
author Sayef Bakari
Sofien Tiba
Nissar Fakraoui
spellingShingle Sayef Bakari
Sofien Tiba
Nissar Fakraoui
DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?
Journal of Smart Economic Growth
author_facet Sayef Bakari
Sofien Tiba
Nissar Fakraoui
author_sort Sayef Bakari
title DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?
title_short DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?
title_full DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?
title_fullStr DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?
title_full_unstemmed DOES DOMESTIC INVESTMENT CONTRIBUTE TO ECONOMIC GROWTH IN URUGUAY? WHAT DID THE EMPIRICAL FACTS SAY?
title_sort does domestic investment contribute to economic growth in uruguay? what did the empirical facts say?
publisher Journal of Smart Economic Growth
series Journal of Smart Economic Growth
issn 2537-141X
publishDate 2019-10-01
description The fundamental role of domestic investment to provide economic prosperity is very well recognized by the economic theory since the Mercantilist theory. Hence, we investigate the impact of domestic investment on economic growth for the case of the Uruguayan economy over the period 1960-2017. For this aim, we employ the Vector Error Correction Model (VECM). Our highlights reveal the absence of a significant impact of domestic investment on growth in the short- and long-run. Due to the marginal role of domestic investment played in the Uruguayan economy, the weak saving rate couldn’t significantly help the economy and creating wealth. Therefore, a strong saving policy is required to encourage domestic investors and reevaluate their crucial role in the economic process of Uruguay.
url https://jseg.ro/index.php/jseg/article/view/59
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AT sofientiba doesdomesticinvestmentcontributetoeconomicgrowthinuruguaywhatdidtheempiricalfactssay
AT nissarfakraoui doesdomesticinvestmentcontributetoeconomicgrowthinuruguaywhatdidtheempiricalfactssay
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