Cointegration of Economic growth and External balance in Colombia: 1963-2016

Barón Ortegón, Brayan Alexander (2018): Cointegration of Economic growth and External balance in Colombia: 1963-2016.

Abstract

In this paper is analyzed the relation between GDP growth and External balance in Colombia for the study period (1963-2016) by using a VECM. Supposing everything else unchanged, we conclude that Colombian external balance granger caused GDP growth and there was indeed a long run relation between both variables. This outcome helps to explain the Colombian GDP growth dynamics over the last fifty years and the impact of trade policy on economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth; External balance; Trade balance; Colombia; VEC model.
• Subjects: F - International Economics > F0 - General > F00 - General; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F17 - Trade Forecasting and Simulation; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F47 - Forecasting and Simulation: Models and Applications

References

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