that this will lead to a dynamic factor model with the dominant unit acting as the factor. The problems of estimation and … documented by Monte Carlo experiments. An empirical application to modelling of real GDP growth and investment-output ratios … dominant effects are found. The results also suggest that increase in investment as a share of GDP predict higher growth rate …

. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …

that this will lead to a dynamic factor model with the dominant unit acting as the factor. The problems of estimation and …