The relationship between macroeconomic indicators and economic development based on time-series model in the case of Australia Boqijonov Adxamjon Ikromjon o’g’li

The relationship between macroeconomic indicators and economic development based on time-series model in the case of Australia


Boqijonov Adxamjon Ikromjon o’g’li. Student, Tashkent State University of Economics in Uzbekistan. [e-mail]
Abduraxmonov Ozodbek Erkin o’g’li. Student, Tashkent State University of Economics in Uzbekistan. [e-mail]
Alitoshev Diyorbek Nurali o’g’li. Student, Tashkent State University of Economics in Uzbekistan. [e-mail]


ABSTRACT


Purpose: GDP Per Capita is currently the most comprehensive and effective indicator of the national economic situation in the world. Macroeconomic indicators are used to analyze the development trend and operation of the national economy. When analyzing economic growth and macroeconomic operation, GDP Per Capita plays a great role. In some situations, it is used to identify factors of economic growth and their impacts. This paper takes data from 1981 to 2021 and investigates the impact of five variables (Unemployment; Inflation; Foreign Direct Investment; Exchange rate; Export; and Industry) on Australia's GDP Per Capita growth using Time series model; OLS; and VAR models.


Methodology: In this section, the paper describes our sample, variables and the model used in determining the impact of the independent variables on Gross Domestic Product per capita in Australia. The sample used is of 5 variables based on the data of the official website of World Bank.


Results: By using multi-factor time-series models, it can be identified that there are both positive (Foreign Direct Investment; Export) and negative (Unemployment; Inflation) relationship in economic indicators with GDP per capita in the long-term. Overall, governments should take into account the effects of economic factors such as unemployment, inflation, export, investment, exchange rate and industry, to the economic development in order to become healthy and stable country in terms of economy.