Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 31108
The Correlation of Economic Variables on Domestic Investment

Authors: Amirreza Attarzadeh


This paper aims to investigate the relationship between economic variables, e.g., inflation rate, interest rate, trade openness and the growth rate of GDP, with domestic investment. The present study also draws on conceptual economy related theories to verify the negative effect of interest rates on domestic investment. However, trade openness and growth rate had a positive correlation, and the inflation rate may have a positive or negative impact on domestic investment.

Keywords: inflation rate, trade openness, interest rate, growth rate of GDP, domestic investment

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1046


[1] World Bank (Producer). (2015). World Bank. Retrieved from
[2] Jeroh, E., & Ekwueme, C. M. (2015). Interest Rate Regime and the Performance of the Nigerian capital market. Studies and Scientific Researches. Economics Edition, (22).
[3] Keynes, J. M. (2006). General theory of employment, interest and money: Atlantic Publishers & Dist.
[4] Jorgenson, D. (1967). The theory of investment behavior Determinants of investment behavior (pp. 129-188): NBER.
[5] Ford, R., & Poret, P. (1990). Business investment in the OECD economies.
[6] Crotty, J. R. (1990). Owner-manager conflict and financial theories of investment instability: A critical assessment of Keynes, Tobin, and Minsky. Journal of Post Keynesian Economics, 519-542.
[7] Crotty, J. R. (1992). Neoclassical and Keynesian approaches to the theory of investment. Journal of Post Keynesian Economics, 483-496.
[8] Thirlwall, A. P., & Barton, C. (2014). Inflation and Growth: the international evidence. PSL Quarterly Review, 24(98).
[9] De Gregorio, J. (1993). Inflation, taxation, and long-run growth. Journal of Monetary Economics, 31(3), 271-298.
[10] Iqbal, N. (2009). Ent, inflation and Investment Economic growth nexus. The Pakistan Development Review, 863-874
[11] Able, S. L. (1980). Inflation uncertainty, investment spending, and fiscal policy. Economic Review (Feb), 3-13.
[12] Fung, B. (2003). Deflation and its challenges to monetary policy in Asia. Unpublished BIS working paper.
[13] Solon, O., & Floro, M. (1993). The Philippines in the 1980s: A Review of National and Urban Level Economic Reforms: World Bank.
[14] Pettinger, T. (Producer). (2012, may 28). Retrieved from
[15] Desroches, B., & Francis, M. (2010). World real interest rates: a global savings and investment perspective. Applied Economics, 42(22), 2801-2816.
[16] Lidderdale, T. (Producer). (2001, October 14). Classical Macroeconomic Theory. lidderdale. Retrieved from
[17] Razin, A., Sadka, E., & Coury, T. (2002). Trade Openness and Investment Instability: National bureau of economic research
[18] Skipton, C. (2007). Trade Openness, Investment, and Long-Run Economic Growth. Paper presented at the 07-‘08 Southern Economics Association (SEA) Meetings.
[19] Soltani, H. (2012). Trade openness and economic growth: the case of Tunisia. Economics Bulletin, 32(4).
[20] Solomou, S. (1990). Phases of economic growth, 1850-1973: Kondratieff waves and Kuznets swings: Cambridge University Press.
[21] Kuznets, S. (1955). Economic growth and income inequality. The American economic review, 1-28.
[22] Feldstein, M., & Bacchetta, P. (1991). National saving and international investment National saving and economic performance (pp. 201-226): University of Chicago press.
[23] Blomstrom, M., Lipsey, R. E., & Zejan, M. (1993). Is fixed investment the key to economic growth? National Bureau of Economic Research.