Determinants of Growth in an Error

Download or read book Determinants of Growth in an Error written by Mr.Armando Méndez Morales and published by International Monetary Fund. This book was released on 1998-07-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.