Modelling Investment in Central America and the Dominican Republic (Modelación de la Inversión en Centroamérica y la República Dominicana) (Spanish)

Abstract:     
This paper models aggregate investment in Costa Rica, El Salvador, Guatemala, Honduras, and the Dominican Republic using annual time series spanning the last four decades of the 20th century. The analysis reveals cointegrating investment functions. The short run dynamic modelling estimates a significant impact from output growth on investment growth in all the economies. But interest rates, and uncertainty and government activity measures, are not consistently relevant in explaining investment dynamics.

Note: Downloadable document is in Spanish.

Number of Pages in PDF File: 20

Keywords: investment, uncertainty, Ricardian equivalence, cointegration, equilibrium correction models, Central America, Dominican Republic

JEL Classification: E22, C22, C53, 012

Accepted Paper Series