Revisiting economic growth: the case of Guatemala

Resumen

The evaluation of the main determinants of economic growth is an important task that central banks must address to achieve the economic development of a country. Previous literature has found different determinants with cross section and data panel models. This study analyzed economic growth and its main determinants in the case of Guatemala, with the estimation of a Structural Vector Autoregressive (SVAR) model with annual data spanning from 1962 to 2022. The explanatory variables included in the SVAR model were obtained by running of an Autoregressive Distributed Lag (ARDL) model due to the small sample used in the study. The research found empirical evidence that both gross fixed capital formation and openness to trade are important determinants of economic growth in the case of Guatemala.

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