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

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Author Info
Rao, B. Bhaskara

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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.

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File URL: http://mpra.ub.uni-muenchen.de/3372/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1547.

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Date of creation: 01 Dec 2006
Date of revision: 01 Jun 2007
Handle: RePEc:pra:mprapa:1547

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Related research
Keywords: Endogenous and exogenous growth models human capital trade openness permanent growth effects.

Find related papers by JEL classification:
O49 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
C00 - Mathematical and Quantitative Methods - - General - - - General
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models

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  1. Francesco Caselli & Daniel Wilson, 2003. "Importing technology," Working Papers in Applied Economic Theory 2003-04, Federal Reserve Bank of San Francisco. [Downloadable!]
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  2. William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June. [Downloadable!]
  3. Robert J. Barro & Jong-Wha Lee, 1993. "International Comparisons of Educational Attainment," NBER Working Papers 4349, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Neil R. Ericsson & James G. MacKinnon, 2002. "Distributions of error correction tests for cointegration," Econometrics Journal, Royal Economic Society, vol. 5(2), pages 285-318, 06. [Downloadable!] (restricted)
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  6. Kevin D. Hoover & Stephen J. Perez, . "Truth and Robustness in Cross-country Growth Regressions," Department of Economics 01-01, California Davis - Department of Economics. [Downloadable!]
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  7. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," NBER Working Papers 3099, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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