Adapting the Extended Solow Model: Impact of Output Determinants on Economic Growth, Peruvian Case 2000 - 2022

The present study seeks to analyze the impact of the externalities of investments in infrastructure on economic growth in Peru during the period 2000-2022. The research methodology is basic, quantitative approach, non-experimental, longitudinal design with explanatory scope, based on Solow's augmented model of economic growth. The OLS results indicate that the coefficient of variation of private income and the labor force is significantly and positively explained by GDP with an adjusted R2 of 0.94 that explains the variability of the model; Regarding the impact, the VAR model is used with impulse response tests and variance imbalance where it was found that investments in infrastructure and the workforce have a positive and significant impact on GDP. It is concluded that investments in infrastructure, especially private ones, have had a positive and significant impact on the economic growth of Peru during the period 2000-2022. These investments have acted as a key driver for the recovery and increase in GDP and thus the reduction of unemployment, while externalities, such as improvements in connectivity and productivity, have been fundamental to strengthen long-term economic development.