LONG RUN MULTIPLE CAUSALITY MEASURE ON ECONOMIC GROWTH

In a recent published paper, the second author studied the problem of causality between economic growth and investment in education, by using the method developed by Dufour and Taamouti. In this paper we intend to extend this analysis by considering the case of three variables: gross domestic product, investment in education, and investment in physical capital, all variables being considered as per-capita quantities. We try to highlight the explicit form of a VAR model, to emphasize the evolutionary dynamics and to make a comparative study of different types of economies: Germany and France on the one hand and Romania on the other. The main aim of this paper is to determine the measure of causality effect of the two types of investments on economic growth. The results largely confirm the theoretical assumptions of the endogenous models.