Impact of Investments on an Emerging Economy: Models & Forecasts -- The Case of Romania

This book addresses the problem of correlations between investments, economic growth and employment using three different instruments: error correction models, neural networks and VAR models. Analysing the results, the authors conclude about the coherence of the three types of models which have considered the reciprocal influences between investments and economic growth; investments and employment. The factors with positive impacts (GDP growth, foreign direct investments, degree of imports coverage by exports, wage increase) and negative impacts (active interest rate, depreciation of the exchange rate, unemployment, increase in tax burden) upon investments were revealed and policy measures formulated. See more