THE RELATIONSHIP BETWEEN TRADE OPENNESS AND INVESTMENT IN SYRIA

Yıl 2015, , 19 - 28, 30.04.2015

Adel Shakeeb Mohsen

https://doi.org/10.15637/jlecon.77

Öz

This study attempts to investigate the effect of trade openness, GDP and population on the
investment in Syria over the period 1980-2010. The cointegration test indicates that investment is
positively and significantly related to the trade openness, GDP and population. Population has the
biggest effect on the investment. The Granger causality test indicates bidirectional short-run causality
relationships between trade openness, GDP, population and investment. There are also unidirectional
long-run causality relationship running from trade openness to investment, and bidirectional long-run
causality relationships between GDP, population and investment. The study result indicates that it is vital
for the Syrian government to still adopt the economic policy in liberalizing foreign trade in order to
motivate the investment in the country. 

Anahtar Kelimeler

Syria, Investment, Trade Openness, Economic Growth, Population, VAR

Kaynakça

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