The Journal of Accounting and Management, Vol 2, No 2 (2012)

An analysis on the investment demand dependence relative to GDP and the interest rate for Romania during 2001-2011

Catalin Angelo IOAN, Gina IOAN

Abstract


In this paper, we have investigated the dependence of investment demand based on GDP and the real interest rate in Romania during 2001-2011. After determining the regression equation, an apparently surprising conclusion is that if an increase of 1% of GDP leads to an increase in investment of 0.45%, in the case of the real interest rate, the results contradict the classical theory. Thus, an increase in the real interest rate seems to attract an increase in the investment process.


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