| By: |
Arevilca Vasquez, Bismarck Javier;
Risso Charquero, Adrian Winston |
| Abstract: |
Theoretical and empirical literature have focused on supply factors when
studying economic growth determinants. The present work analyzes demand
factors as determinants of the Bolivian economic growth between 1953-2002
using framework introduced by Thirlwall (1979). According to cointegration
analysis exports were an important determinant in the Bolivian economic growth
for the whole period. In addition, real exchange rate presents a negative
relationship respect to the long run growth. Further results show that
Bolivian imports are more elastics than exports respect to the GDP,
determining a negative impact in trade balance. An hypothesis is that the
implemented economic model after 1985 has increased the external constraint of
the country causing a process of “deindustrialization”. |
| Keywords: |
Bolivia; Growth; Thirlwall’s Law; Cointegration |
| JEL: |
O1 F1 C2 |
| Date: |
2007–10–14 |
| URL: |
http://d.repec.org/n?u=RePEc:pra:mprapa:5685&r=fdg |