Portada Ensayos sobre Política Económica (ESPE) - The Impact of Efficiency on the Economic Growth of Emerging Economies: the Case of Colombia
En la revista Ensayos sobre Política Económica (ESPE) divulgamos los resultados y las propuestas de política que surgen de investigaciones académicas realizadas en el Banco de la República. Cuando nos lea, tenga siempre presente que el contenido de nuestros artículos, así como los análisis y conclusiones que de ellos se derivan, son exclusiva responsabilidad de sus autores. El material divulgado en nuestra revista ESPE no compromete ni representa la opinión del Banco de la República ni la de su Junta Directiva.
In the journal Ensayos sobre Política Económica - ESPE - we disclose the results and policy proposals that arise from academic research carried out at the Banco de la República. When you read us, always keep in mind that the content of our articles, as well as the analyzes and conclusions derived from them, are the sole responsibility of their authors. The material disclosed in our ESPE magazine does not compromise or represent the opinion of Banco de la República or that of its Board of Directors.
Abstract
As is well established (Robinson and Acemoglu, 2012), the economic performance of countries depends on the level of quality of its institutions. Referring to the economic performance, this paper establishes the aggregate efficiency of 133 countries in the generation of GDP by using the production theory framework and considering the participation of human as well as physical capital. Additionally, it is analyzed to what extent the aggregated performance depends on the level of quality and effectiveness of the subsequent national public institutions. It is also determined whether or not the size of the public expending, and its level of efficiency, have an impact on the rate of economic growth. To conclude, the conditions to favor the public expending as a driver for economic growth are determined. After a general overview, the specific situation of Colombia is analyzed. The results confirm the importance of the quality of the institutions on the respective levels of efficiency. It is also verified how the level of efficiency is a key factor to obtain economic growth from the public spending.
