Rates, Ratios And Per Capita Variables In International Models: Analysis Of Investment And Foreign Trade In Oecd Countries
Some econometric models try to explain the rate of growth of real Gross Domestic Product per capita as a function or ratios like Investment/GDP or Exports/GDP, with confusing results and conclusions which are misleading when the studies do not show a positive impact of the explanatory variables. Some of these approaches are inspired in the Solow model which is indeed interesting at a theoretical level when the hypotheses of the model hold in one country for a short period of time, but some hypothesis of the model do not hold in long samples of a same country or in international comparisons. Usually economic growth of real GDP per capital increases with Investment per capita but the Investment/GDP ratio usually diminish with the increase of Investment per capita. In the vase of these two explanatory variables it is much more convenient and realistic to use real values per capita instead of ratios for the explanation of economic development. Besides we include other considerations of interest regarding international differences of Exports per capita among countries. We present data, graphs and estimations of interest in this regard for 25 OECD countries.
Volume (Year): 5 (2008)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.usc.es/economet/eaa.htm |
|Order Information:|| Web: http://www.usc.es/economet/info.htm Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guisan, M.C., 2006. "Industry, Foreign Trade and Development: Econometric Models of Europe and North America, 1965-2003," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 3(1), pages 5-30.
- Valadkhani, A., 2005. "Macroeconomic Modelling: Approaches and Experiences in Development Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(1).
- David Fielding, 1998. "A Structural Model of Social and Economic Development," Discussion Papers in Economics 99/1, Department of Economics, University of Leicester.
- B. Bhaskara Rao & Rup Singh & Neelesh Gounder, 2007. "Investment ratio in growth equations," Applied Economics Letters, Taylor & Francis Journals, vol. 14(8), pages 565-568.
- Neira, Isabel, 2003. "Modelos econometricos de capital humano: Principales enfoques y evidencia empirica," Economic Development 64, University of Santiago de Compostela. Faculty of Economics and Business. Econometrics..
When requesting a correction, please mention this item's handle: RePEc:eaa:ijaeqs:v:5:y2008:i:2_1. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (M. Carmen Guisan)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.