An Empirical Relationship between Agriculture Investment and Economic Growth in North Macedonia: An ARDL Analysis

Abstract

The main aim of this paper is to find the relationship between agriculture investment and the growth of the gross domestic product in North Macedonia. We collected the yearly secondary time series data between the periods 1991 to 2020. We run the ARDL co-integration test to check the long-run as well as the short-run relationship between dependent and independent variables. We found a positive and significant relationship between agriculture valueadded and the growth of the GDP in the long run. The agricultural land has a positive relationship with the growth of the GDP in the long run but negatively correlated in the short run. Last, both variables agricultural methane emissions and inflation are negatively correlated with the growth of the gross domestic product in both the long and the short run.