Components of aggregate demand in the Libyan economy and their impact on economic growth (1990-2022)

Abstract

The study examined the impact of aggregate demand components in the Libyan economy on gross domestic product during the period (1990-2022). The study aimed to identify the conceptual aspects of aggregate demand and economic growth represented by GDP. The importance of this study lies in the fact that changes in aggregate demand and GDP cause short-term fluctuations in the level of economic activity. The study's hypothesis was that total spending plays an important role in achieving economic growth and prosperity for the country through its contribution to and impact on GDP. Using the statistical program EVIEWS14 and the statistical estimation model VECM, it was found that the estimated model is statistically significant. The study recommended working to support self-sufficiency in basic commodities, especially in agriculture, to reduce demand for imports from the outside world and increase domestic demand, working to provide a safe and stable environment for the implementation of development projects and creating an attractive climate for investment, and providing a clear investment map to attract local and foreign investment.