Time Series Econometrics of Growth Models: A Guide for Applied Economists

Rao, B. Bhaskara (2006): Time Series Econometrics of Growth Models: A Guide for Applied Economists.

Abstract

This paper examines the use of specifications based on the endogenous and exogenous growth models for country specific growth policies. It is suggested that time series models based on the Solow (1956) exogenous growth model are useful and they can also be extended to capture the permanent growth effects some variables. Our empirical results, with data from Fiji, show that trade openness and human capital have significant and permanent growth effects. However, these growth effects are small and eventually converge over time.

• Item Type: MPRA Paper
• Institution: University of the South Pacific
• Language: English
• Keywords: Endogenous and exogenous growth models; human capital; trade openness; permanent growth effects
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O49 - Other; C - Mathematical and Quantitative Methods > C0 - General > C00 - General; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes