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Cobb-Douglas Production Function: The Case of Poland’s Economy

  • Chaido DritsakiEmail author
  • Pavlos Stamatiou
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

The aim of this paper is to analyze the relationship between international trade and economic and financial development for Poland for the period 1990–2016. For this long run relationship we apply the autoregressive distributed lag—ARDL technique as it was formed by Pesaran and Shin (Econometrics and economic theory in the 20th century. The Ragnar Frisch centennial symposium. Cambridge University Press, Cambridge, 1999) and Pesaran et al. (J Appl Econ 16:289–326, 2001) as well as the augmented Cobb-Douglas production function formed by Mankiw et al. (Quart J Econ 107:407–437, 1992). The results of ARDL test confirm the existence of long run relationship between examined variables. Capital seems to be an impetus of economic development both in the short and long run, while labor has a negative impact in Poland’s economic growth. However, trade openness and financial development found to be insignificant on economic development both in the short and long run. Finally, causality results showed that there is a unilateral causal relationship between financial development and labor towards economic development and also a bilateral causal relationship between capital and trade openness with economic development.

Keywords

Cobb-Douglas production function ARDL bounds test Vector error correction model Granger causality analysis Poland 

JEL Classification

F43 C52 C23 047 

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.Department of Accounting and FinanceWestern Macedonia University of Applied SciencesKoila, KozaniGreece

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