THE CAUSALITY RELATIONSHIP BETWEEN INTEREST RATE AND INCOME WITH INVESTMENT IN USA: 1965-2016
ABD’ DE YATIRIM İLE FAİZ ORANI VE GELİR ARASINDAKİ NEDENSELLİK İLİŞKİSİ: 1965-2016

Author : Yener ALTUN -- Şakir İŞLEYEN - Çetin GÖRÜR
Number of pages : 146-163

Abstract

In this study, the interaction between Interest Rate and Gross Domestic Product with Investment was investigated in the USA using the Granger causality test for 1965 -2016. Before determining the Granger causality relationship, unit root and cointegration analysis was conducted. According to the findings obtained by using time series techniques, the existence of Gross Domestic Product and Interest Rate with Investment were found. On the other hand, according to the results of Granger Causality; Interest Rate denominated neither a Gross Domestic Product nor an Investment. Also a one-way causality relationship was found between the Gross Domestic Product and the Interest Rate as well as the one-way from Investment to Gross Domestic Product causality relation.

Keywords

Investment, Interest Rate, Gross Domestic Product, Income.

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