Impact of socio-economic factors and regional conflicts on macroeconomic factors

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Date

2023

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Abstract

This study examines the impact of socio-economic factors and regional conflicts on macroeconomic indicators, specifically gross domestic product per capita and foreign direct investment. The study employs panel unit root tests, cointegration tests, and dynamic fixed effect-autoregressive distributed lag models to analyze data from 115 countries. The results reveal that population growth, trade openness, life expectancy at birth, years of schooling, and the global peace index significantly influence gross domestic product per capita in both the short and long term. However, their effects on foreign direct investment are less clear. The study highlights the negative short-term impact of rapid population growth on GDP per capita, the positive short-term effect of trade openness on GDP per capita, and the long-term negative effect of trade openness on GDP per capita. Additionally, it underscores the importance of peace and stability in promoting economic growth, as conflicts are found to hinder economic prosperity. These findings provide valuable insights for policymakers in formulating effective economic policies and emphasize the need for further research on the relationship between socio-economic factors and foreign direct investment, as well as other potential determinants of economic growth.

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Keywords

socio-economic factors, regional conflicts, macroeconomic indicators, masters dissertation

Citation

Zupiruly G./Impact of socio-economic factors and regional conflicts on macroeconomic factors/Economics, Kaskelen-2023

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