Journal of Statistical and Econometric Methods

Economic Growth in Brazil: Granger Causality

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  • Abstract

    Given the continuing economic growth in Brazil, there is a growing interest in examining the variables that fuel such growth. The immense literature on economic growth in Brazil is composed of studies that investigate different aspects of this nationís growth in GDP. However, no study has examined the causality between economic growth and its determining elements. The purpose of this study is: (1) to determine the economic variables that contribute to Brazilís GDP growth over time, and (2) to examine the causality between these variables and economic growth. To achieve these goals the study uses a model that is based on the postulates of de Mello. Employing annual data, the model will be estimated by using the Beach Mackinnon technique which corrects for autocorrelation.