Research Article Open Access

A Causal Relationship and Macroeconomic Activity: Empirical Results From European Union

Chaido Dritsaki1 and Antonios Adamopoulos1
  • 1 ,
American Journal of Applied Sciences
Volume 2 No. 2, 2005, 504-507

DOI: https://doi.org/10.3844/ajassp.2005.504.507

Submitted On: 26 March 2006 Published On: 28 February 2005

How to Cite: Dritsaki, C. & Adamopoulos, A. (2005). A Causal Relationship and Macroeconomic Activity: Empirical Results From European Union. American Journal of Applied Sciences, 2(2), 504-507. https://doi.org/10.3844/ajassp.2005.504.507

Abstract

This study investigates the relationship among macroeconomic variables using quarterly data for European Union covering the period from 1970 I to 2000 IV. The purpose of this study is to estimate the dynamic interrelation among macroeconomic variables such as money, gross domestic product, interest rates, level of price and exchange rates. For the empirical analysis of this investigation, we employ the Johansen multivariate cointegration technique as well as Granger causality tests. The empirical results provide evidence for the existence of important causality relations between variables that describe macroeconomic activity.

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Keywords

  • Causal Relationship
  • Macroeconomic Activity
  • European Union