Comparative Approach of Economic Growth Engines (Senegal vs. Jordan) using Granger Causality Test
The purpose of this paper is to analyze the causality between eight purposefully selected variables and the economic growth in two countries (Senegal and Jordan) and to assess the relationship of these variables for the period 1990 to 2020. A time-series econometric technique (Granger causality)...
| Published in: | Revista de Management Comparat International |
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| Main Authors: | , , |
| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2022-03-01
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| Subjects: | |
| Online Access: | https://www.rmci.ase.ro/no23vol1/14.pdf |
| Summary: | The purpose of this paper is to analyze the causality between eight purposefully
selected variables and the economic growth in two countries (Senegal and Jordan) and to
assess the relationship of these variables for the period 1990 to 2020. A time-series
econometric technique (Granger causality) has been applied to test the hypothesis of the
economic growth pillars in a comparative approach. The dependent variable in the model
is the economic growth, measured by the GDP per capita. The eight variables which
influence economic growth engines in the target countries for this study (Senegal and
Jordan) are: gross fixed capital formation (% of GDP), gross capital formation (% of
GDP), population aged 15-64 (% of total population), net official development assistance
and official aid received (foreign aid), agriculture added value, industry added value,
volume of imports and volume of exports. The results revealed the impact of economic
growth drivers on GDP per capita in each country and provide governmental decisionmakers valuable insights on finding the optimal balance between the macroeconomic
indicators leading to economic growth. |
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| ISSN: | 1582-3458 2601-0968 |