Modeling with Limited Data; Estimating Potential Growth in Cambodia
This paper proposes a framework to analyze long-term potential growth that combines a simple quantitative model with an investigative approach of â€˜growth diagnosticsâ€™. The framework is used to forecast potential growth for Cambodia, and to conduct simulations about the main drivers of growth in that country. The main result is that Cambodia compares less favorably against other lower-income Asian economies in terms of its investment rate, which in turn is constrained by the poor quality of its infrastructure. Bridging this gap can lift Cambodiaâ€™s potential growth by more than one percentage point.
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- International Monetary Fund, 2010. "Estimating Potential Output with a Multivariate Filter," IMF Working Papers 10/285, International Monetary Fund.
- Willman, Alpo, 2002. "Euro area production function and potential output: a supply side system approach," Working Paper Series 0153, European Central Bank.
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