Determinants of Economic Growth in the Libyan Economy for the Period 1962-2010

Abstract

This research examines the existence of a stable and long relationship between the economic growth and some economic variables proposed by the economic literature; especially those which apply to the developing countries. The recently developed Bounds Testing Approach to Co-integration was used. The results showed the existence of an equilibrium relationship between the economic growth, the investment-production ratio, labour growth rate and money supply growth rate. These findings have some economic policy implications for stimulating economic growth.

Keywords: Economic Growth, Co-integration.