Adapting the Extended Solow Model: The Impact of Output Determinants on Economic Growth in Peru from 2000 to 2022

Read the full article

Listed in

This article is not in any list yet, why not save it to one of your lists.
Log in to save this article

Abstract

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 methodology used is quantitative, with a non-experimental and longitudinal design, based on the Solow model, using VAR and VEC to analyze the relationship between investment in infrastructure and economic growth in Peru (2000–2022). The results indicate that the coefficient of variation in 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. It was found that investments in infrastructure and labor 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 in unemployment, while externalities, such as improvements in connectivity and productivity, have been fundamental for strengthening long-term economic development.

Article activity feed