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

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  • Baron Ortegon, Brayan Alexander

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.

Suggested Citation

  • Baron Ortegon, Brayan Alexander, 2018. "Cointegration of Economic growth and External balance in Colombia: 1963-2016," SocArXiv 64kh8, Center for Open Science.
    • Handle: RePEc:osf:socarx:64kh8
    DOI: 10.31219/osf.io/64kh8
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