Time Series Econometrics of Growth Models: A Guide for Applied Economists

This paper examines the use of specifications based on the endogenous and exogenous growth models for country specific growth policies. It is suggested that time series models based on the Solow (1956) exogenous growth model are useful and they can also be extended to capture the permanent growth effects some variables. Our empirical results, with data from Fiji, show that trade openness and human capital have significant and permanent growth effects. However, these growth effects are small and eventually converge over time.