The relationship between economic development and selected economic indicators in the case of Germany

Abstract

Purpose: Germany is one of the World's leading industrialized nations, with a highly competitive industrial sector and a skilled labor force and a key player in the global economy. Categorically, several economic indicators which have both positive and negative influences, a striking link have been identified as important drivers of economic development, including GDP per capita, inflation, unemployment rate, foreign direct investment (FDI), export, and agriculture by academics and economists including Klaus Zimmerman and Clemens Fuests in their researches.

The article aims to explore the link among economic development and these key economic indicators in the case of Germany, highlighting trends and patterns over time and identifying potential future challenges and opportunities.

Methodology: This study employed a quantitative research methodology, analyzing secondary data from secondary sources including independent variable and dependent variable. The data obtained from the World Bank and Federal Reserve Economic Data (FRED), covering the period from 1990 to 2021, enabling a thorough investigation of how economic growth and certain economic indicators relate to one another. In this research, the independent variables were inflation,

unemployment rate, FDI, exports, and agriculture, with annual time-series data on GDP per capita serving as the dependent variable.

Results: Utilizing multi-factor time-series models, especially the OLS and VAR models analysis, the research demonstrated that it has been discovered that although it is possible to argue that the relationship between GDP per capita and both unemployment and inflation is negative, the other variables have a positive impact on GDP per capita.

Originality: In numerous academic disciplines, including economics, political science, and international relations, there has been an extensive research and study on the topic of the relationship between economic development and several economic indicators such as GDP per capita, inflation rate, unemployment rate, export, FDI and other indicators in the case of Germany. However, this article provides offer original insights and detailed examination of the effects of selected economic variables on Germany's economic progress over the last three decades. original insights into the topic of the relationship between economic development and selected economic indicators in the case of Germany.