DETERMINANTS OF DOMESTIC INVESTMENT IN THE LIBYAN PUBLIC MANUFACTURING SECTOR
DETERMINANTS OF DOMESTIC INVESTMENT IN THE LIBYAN PUBLIC MANUFACTURING SECTOR

Summary/Abstract: Many studies and empirical literature on investment have shown some important variables affecting domestic investment. This study aimed to identify determinants of domestic investment in the public manufacturing sector in the Libyan economy during the period (1962-2008). Properties of time series of the model variables have been analyzed by using several tests for determining the integration level of each time series separately. By using the Johansen-Juselius cointegration method, the results showed the significance of the impact of annual appropriations for the manufacturing sector and imports of machinery & capital goods on domestic investment in the public manufacturing sector, the results of these tests revealed an equilibrium relationship between domestic investment in the public manufacturing sector and its determinants in the long and short-run.

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