Testing Caldor's hypothesis of the relationship between industrial production and economic growth

Abstract

Among the most important economic
indicators that express the strength and
durability of the economy, we find
industrial production and economic
growth. This hypothesis was verified
during the 1990-2021, then re-tested in
the period 2000-2021, based on the var
autoregressive vector model, where the
study concluded that there is a causal
relationship that goes from economic
growth to industrial production, while
this relationship is negated in the
opposite direction, i.e., from industrial
production to economic growth.