The effects of privatisation and FDI on economic growth in Argentina

This paper uses time-series model to estimate the effects of privatisation and FDI on economic growth in Argentina over the period 1971- 2000. Unit root tests and Co-integration tests are used to ensure that all variables used are stationary and that there exists a long run relationship among the variables. An error correction model is constructed to estimate both the short- and long-run effects of privatisation and FDI on economic growth in Argentina. The evidence suggest that during 1971- 2000, FDI had no effect on either short- or long-run economic growth in Argentina, while privatisation had negative significant effects on economic growth in the long-run only,