The use of decomposition methods to understand the economic growth gap between Latin America and east Asia
| Autor: | Beatriz Barrado, Jaime Sanaú, Gregorio Giménez |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Latin Americans
Geography Planning and Development TJ807-830 Management Monitoring Policy and Law TD194-195 Human capital Renewable energy sources Physical capital 0502 economics and business Economics GE1-350 human capital institutions East Asia Economic geography Endogeneity 050207 economics Sustainable development sustainable development Environmental effects of industries and plants Divergence (linguistics) Renewable Energy Sustainability and the Environment Shapley–Owen–Shorrocks 05 social sciences 050301 education investment economic growth Oaxaca–Blinder Environmental sciences Latin America Variance decomposition of forecast errors 0503 education |
| Zdroj: | Zaguán. Repositorio Digital de la Universidad de Zaragoza instname Zaguán: Repositorio Digital de la Universidad de Zaragoza Universidad de Zaragoza Sustainability Volume 13 Issue 12 Sustainability, Vol 13, Iss 6674, p 6674 (2021) |
| Popis: | Understanding how growth factors contribute to explaining the large differences in growth rates across countries remains an important research agenda. The common approach to exploring this issue is based on the use of multiple linear regression analyses. This work contributes to growth literature by applying a new perspective based on the use of variance decomposition procedures: Shapley–Owen–Shorrocks and Oaxaca–Blinder. These methodologies have four main advantages with respect to traditional methodologies: they make possible the quantification of the relative contribution of each factor to economic growth, they allow us to estimate the efficiency in the use of the endowments of each factor, they can be used with any functional form and they can be used with estimation methods that are robust regarding endogeneity issues. We illustrate these advantages by analyzing the causes of the economic growth gap between Latin America and East Asia over the period 1980–2014. We find that the economic growth divergence between the two regions can be primarily explained by the differences in institutions and physical capital. In addition, the results indicate that the higher East Asian performance is not only due to its higher levels of endowments in these factors, but also to the higher efficiency in its use. We connect our results with the 2030 Agenda for Sustainable Development. |
| Databáze: | OpenAIRE |
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