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Determinants of Growth in an Error

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  • Armando Méndez Morales
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    Abstract

    An error-correction model identifies determinants of growth consistent with results from panel regressions based on a standard Cobb-Douglas production function for El Salvador for 1970-1995, with structural factors affecting the technology variable and macroeconomics and expectations explaining the deviations from the long-run trend. Consistency of the parameters is satisfactory, especially considering that half of the sample period was affected by a civil war, 40 percent of the working population migrated to foreign countries during that period, and the rapid process of economic reform after the advent of peace resulted in overlapping structural patterns.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 98/104.

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    Length: 28
    Date of creation: 01 Jul 1998
    Date of revision:
    Handle: RePEc:imf:imfwpa:98/104

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    1. Bleaney, Michael & Mizen, Paul, 1997. "Credibility and Disinflation in the European Monetary System," Economic Journal, Royal Economic Society, vol. 107(445), pages 1751-67, November.
    2. Ball, Laurence & Mankiw, N Gregory, 1995. "Relative-Price Changes as Aggregate Supply Shocks," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 161-93, February.
    3. Prakash Loungani & Phillip Swagel, 1995. "Supply-side sources of inflation: evidence from OECD countries," International Finance Discussion Papers 515, Board of Governors of the Federal Reserve System (U.S.).
    4. Andreas Fischer, 1996. "Central bank independence and sacrifice ratios," Open Economies Review, Springer, vol. 7(1), pages 5-18, January.
    5. Guy Debelle, 1996. "The Ends of Three Small Inflations: Australia, New Zealand and Canada," Canadian Public Policy, University of Toronto Press, vol. 22(1), pages 56-78, March.
    6. Stanley Fischer, 1981. "Relative Shocks, Relative Price Variability, and Inflation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 12(2), pages 381-442.
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    Cited by:
    1. Ludger J. Loening, 2002. "The Impact of Education on Economic Growth in Guatemala: A Time- Series Analysis Applying an Error-Correction Methodology," Econometrics 0211002, EconWPA.
    2. Loening, Josef & Rao, B. Bhaskara & Singh, Rup, 2010. "Effects of education on economic growth:Evidence from Guatemala," MPRA Paper 23665, University Library of Munich, Germany.
    3. Reitschuler, Gerhard & Loening, Josef L., 2005. "Modeling the Defense-Growth Nexus in Guatemala," World Development, Elsevier, vol. 33(3), pages 513-526, March.
    4. Stefania Villa, 2005. "Determinants of growth in Italy. A time series analysis," Quaderni DSEMS 24-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    5. Loening, Josef & Rao, B. Bhaskara & Singh, Rup, 2010. "Effects of schooling levels on economic growth: time-series evidence from Guatemala," MPRA Paper 25105, University Library of Munich, Germany, revised 16 Sep 2010.
    6. Josef L. Loening, 2004. "Time series evidence on education and growth: the case of Guatemala, 1951-2002," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 19(2), pages 3-40, December.

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