The Contribution of Domestic Investment, Exports and Imports on Economic Growth: A Case Study of Peru

Abstract

This article has examined the contribution of domestic investment, exports and imports on economic growth in Peru. To achieve this objective, annual data for the period between 1970 and 2017 were used and tested based on Johansen co integration analysis and the vector error correction model. According to the results of the analysis, it has been determined that domestic investment, exports and imports have not any effect on economic growth in the short run and in the long run. These outcomes manifest that trade openness and domestic investments are not beholden as a provenance of economic growth in Peru over this extended period and suffer from many issues and a miserable economic organization