Modeling long-run determinants of economic growth for the mauritian economy

Maylene Y Damoense-Azevedo ()
Additional contact information
Maylene Y Damoense-Azevedo: Productivity South Africa, South Africa

Journal of Developing Areas, 2013, vol. 47, issue 1, 1-21

Abstract: This study develops a macroeconometric model for the Mauritian economy to explain long-run determinants of the country’s economic performance. The Engle-Granger (1987) two-step cointegration methodology is adopted to capture both short-run and long-run dynamic properties of the macroeconomy. The empirical findings indicate that labor, domestic investment, prices and financial development play a pivotal role in the economic growth process of the Mauritian economy. More notably, the contribution of financial development to the economic performance of the domestic economy is positively influenced by output, foreign direct investment, human capital, trade liberalization and price stability. Policy should emphasize the role of FDI-financing for education and training and capital investment projects. Furthermore, the promotion of trade and financial liberalization as well as the maintenance of macroeconomic stability is crucial to enhance financial deepening and in turn sustained economic performance.

Keywords: Macroeconometric Modeling; Economic Growth; Financial Development; Mauritius (search for similar items in EconPapers)
JEL-codes: C51 C52 E20 O55 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing ... amoense-azevedo.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.47:year:2013:issue1:pp:1-21

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().