The impact of efficiency on the economic growth of emerging economies: The case of Colombia

Víctor Giménez, Diego Prior, Emili Tortosa-Ausina

Research output: Contribution to journalArticleResearchpeer-review

Abstract

© 2018, Banco de la Republica. All rights reserved. As is well established (Robinson and Acemoglu, 2012), the economic performance of countries depends on the level of quality of its institutions. Referring to the economic performance, this paper establishes the aggregate efficiency of 133 countries in the generation of GDP by using the production theory framework and considering the participation of human as well as physical capital. Additionally, it is analyzed to what extent the aggregated performance depends on the level of quality and effectiveness of the subsequent national public institutions. It is also determined whether or not the size of the public expending, and its level of efficiency, have an impact on the rate of economic growth. To conclude, the conditions to favor the public expending as a driver for economic growth are determined. After a general overview, the specific situation of Colombia is analyzed. The results confirm the importance of the quality of the institutions on the respective levels of efficiency. It is also verified how the level of efficiency is a key factor to obtain economic growth from the public spending.
Original languageEnglish
Pages (from-to)86-100
JournalEnsayos Sobre Politica Economica
Volume36
Issue number85
DOIs
Publication statusPublished - 1 Jan 2018

Keywords

  • Aggregate performance
  • Economic growth
  • Quality of institutions
  • Stochastic frontier analysis

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