World Economics - Insight , Analysis and Data

World Economics - Measuring the World Economy
Economic Growth in Venezuela
Claudio Paiva, World Economics, September 2010
This paper presents an empirical analysis of Venezuela’s economic growth in the last several decades, providing possible explanations for the country’s weak performance relative to its peers. First, a growth accounting exercise uncovers a long, negative trend in total factor productivity from the late 1970s through the early 2000s. This trend was also accompanied by a declining ratio of capital stock per worker, attributable to an earlier period of misguided policies that favoured excessive accumulation of physical capital to the detriment of human capital and economic efficiency. Second, empirical tests suggest that Venezuela’s economic growth has been highly and increasingly dependent on oil revenues. Finally, econometric estimates indicate that lax fiscal policies and macroeconomic instability have had a negative impact on growth.

Related thinking:
    Measuring The Americas GDP
World Economics, World Economics, March 2015
    Measuring Latin America
Brian Sturgess, World Economics, March 2014
    The Argentine Productivity Slowdown
Ariel Coremberg, World Economics, September 2011


Download paper


© Copyright World Economics Ltd. 2017