Determinants of Gross Domestic Product: A Structural Equation Modeling

Engineering notes

Results:The findings indicate that all selected macroeconomic variables significantly influence GDP growth.Government expenditure and interest payments emerged as the strongest positive determinants of economic output, while debt levels and labor force participation also contributed positively.Conversely, inflation and unemployment exhibited significant negative effects on GDP.Government expenditure further served as a significant mediating variable through which several macroeconomic determinants affected economic growth.

Chinese explanation / 中文解读

中文解读待补充：本站会优先为端到端自动驾驶、BEV感知、3D目标检测、轨迹预测、路径规划、LiDAR感知等高价值论文补充中文说明。

Original abstract

Aim: This study aims to construct and validate a Structural Equation Model (SEM) that identifies the predictive relationships among key macroeconomic variables influencing Gross Domestic Product (GDP) growth and to provide evidence that can support economic governance, fiscal policymaking, and strategic development planning. Methodology:The study employed a quantitative, correlational, and predictive research design using Structural Equation Modeling.A balanced panel dataset consisting of annual secondary data from the 38 member countries of the Organisation for Economic Co-operation and Development (OECD) covering the period 1994-2023 was analyzed to examine the direct and indirect relationships among selected macroeconomic determinants of GDP. Results:The findings indicate that all selected macroeconomic variables significantly influence GDP growth.Government expenditure and interest payments emerged as the strongest positive determinants of economic output, while debt levels and labor force participation also contributed positively.Conversely, inflation and unemployment exhibited significant negative effects on GDP.Government expenditure further served as a significant mediating variable through which several macroeconomic determinants affected economic growth. Conclusion:The findings demonstrate that sustainable economic growth depends on a balanced combination of effective fiscal policy and macroeconomic stability.The validated SEM highlights the complementary roles of strategic public expenditure, prudent sovereign financing, and workforce participation in promoting long-term economic performance.These findings provide useful evidence for policymakers, government institutions, and development planners in designing integrated fiscal and economic governance strategies that strengthen economic resilience and support sustainable national development.

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