TY - JFULL AU - Khaled Ramadan Elbeydi PY - 2014/3/ TI - An Empirical Analysis of the Impact of Selected Macroeconomic Variables on Capital Formation in Libya (1970–2010) T2 - International Journal of Economics and Management Engineering SP - 489 EP - 493 VL - 8 SN - 1307-6892 UR - https://publications.waset.org/pdf/9997474 PU - World Academy of Science, Engineering and Technology NX - Open Science Index 86, 2014 N2 - This study is carried out to provide an insight into the analysis of the impact of selected macro-economic variables on gross fixed capital formation in Libya using annual data over the period (1970-2010). The importance of this study comes from the ability to show the relative important factors that impact the Libyan gross fixed capital formation. This understanding would give indications to decision makers on which policy they must focus to stimulate the economy. An Autoregressive Distributed Lag (ARDL) modeling process is employed to investigate the impact of the Gross Domestic Product, Monetary Base and Trade Openness on Gross Fixed Capital Formation in Libya. The results of this study reveal that there is an equilibrium relationship between capital formation and its determinants. The results also indicate that GDP and trade openness largely explain the pattern of capital formation in Libya. The findings and recommendations provide vital information relevant for policy formulation and implementation aimed to improve capital formation in Libya. ER -