Measuring the Impact of Economic Variables on Gross Domestic Production in Eurozone Countries for The Period (1975-2021)

The research aims to identify the most important macroeconomic factors affecting economic growth. This research relies on the autoregressive distribution model with distributed lag to shed light on the long-term relationship between GDP growth and some economic variables in the Eurozone countries, using the short-term error correction rate based on annual data for the period from 1975 to 2021. A series of tests were conducted to ensure that the model is free of standard problems such as unit root tests, heterogeneity and serial correlation. This study showed a set of results, including the existence of a long-term equilibrium relationship between the research variables and that the error correction value appeared negative and significant, thus fulfilling the condition for accepting the model. Improving infrastructure and using modern technology in the Eurozone enabled the production of goods and services within a record period of time. Added value had a positive impact on the trade balance of the Eurozone countries.