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.
|Bidragets oversatte titel||Public External Debt and Investment in Colombia 1994-2007: Evidence from a Non-Linear TAR Model|
|Tidsskrift||Cuadernos de Economia|
|Status||Udgivet - 2009|