Modelling Investment in Central America and the Dominican Republic (Modelación de la Inversión en Centroamérica y la República Dominicana) (Spanish)
José R. Sánchez-Fung
Kingston University - School of Economics
December 30, 2009
Cuadernos de Economía, Vol. 28, No. 51, pp. 245-264, 2009
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, 012Accepted Paper Series
Date posted: December 30, 2009
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo5 in 3.125 seconds