American Journal of Applied Sciences

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

Chaido Dritsaki and Antonios Adamopoulos

DOI : 10.3844/ajassp.2005.504.507

American Journal of Applied Sciences

Volume 2, Issue 2

Pages 504-507


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.


© 2005 Chaido Dritsaki and Antonios Adamopoulos. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.