Growth

Model

Short Run

Long Run

Long Run Total Effect

Variables, Effect and Consequence

GOB1

L0. 0.32 (0.009)

L1. 0.05 (0.21)

0.5

(0.08)

0.56

(0.06)

*Growth variables

In the long run, the previous growth, saving effect is significant.

G0P2

L1. 0.21 (0.05)

L2. 0.06 (0.6)

0.2

(0.18)

0.04

(0.77)

*Growth, inflation, interest, M1, M3

Inflation and interest rate effects are significant in the long run.

GOM3

L1. 0.33 (0.0)

L2 .0.06 (0.4)

L3. 0.19 (0.0)

1.25**

(0.003)

−0.05

(0.9)

*Growth, inflation, general expenditure, tax rates

In the long run, the effect of previous growth, inflation, income tax is significant.