Public External Debt and Investment in Colombia 1994-2007 : Evidence from a Non-Linear Tar Model (Deuda Externa Pública e Inversión en Colombia 1994-2007: Evidencia de un Modelo No-Lineal Tar) (Spanish)

This document analyzes the relationship between national government external debt and private investment for Colombia during the period 1994 to 2007, by means of a nonlinear TAR model. In this work MCMC methods and the Bayesian approach were used to estimate the model. The results show evidence of a nonlinear relationship between the variables studied, explained by TAR model. Moreover, the analysis indicates the existence of an inverse relationship between private investment growth and national government external debt growth