Unleashing Central America’s Growth Potential : Guatemala
The objective of this study is to investigate the drivers and constraints of growth and productivity in Guatemala and explore areas with high growth potential. Drawing on the historical growth experience of Guatemala and employing a range of analyt...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/108601633065428559/Guatemala-Unleashing-Central-America-s-Growth-Potential http://hdl.handle.net/10986/36440 |
| Summary: | The objective of this study is to
investigate the drivers and constraints of growth and
productivity in Guatemala and explore areas with high growth
potential. Drawing on the historical growth experience of
Guatemala and employing a range of analytical tools, this
country analysis aims to provide an in-depth study of the
drivers and constraints of the country’s economic growth.
The report first takes stock of the historical growth and
macro performance of the country, before moving to a growth
accounting exercise to understand the past drivers of the
country’s growth. In the same vein, the subsequent section
analyzes aggregate trends in productivity, the engine of
long-term growth, and its relation to the process of
structural transformation. The study then uses a
cross-country benchmarking and panel data regression
analysis based on the growth diagnostic developed by
Hausmann et al. (2005) to identify the binding constraints
to growth. Finally, the analysis presents the links between
growth, diversification, and exports. This analysis relies
on a wide range of analytical tools, which are applied to
each of the six countries in the study to enable
cross-country comparisons. Several quantitative methods are
employed to provide an objective assessment of the drivers
and constraints of growth in Guatemala, including the
long-term growth model (LTGM), the computable general
equilibrium model (CGE), growth diagnostics, and product
space analyses. This same framework, analytical tools, and
data are used for each Central American country to conduct a
parallel analysis that enables meaningful cross-country
comparisons. Therefore, given the wide breadth of the study,
in terms of the methodologies used, subjects analyzed, and
countries covered, it does not aim to analyze in depth each
driver and constraint of growth and provide granular policy
recommendations. The core objective of this study is to
inform the policy makers and other interested parties about
the country’s strengths and weaknesses related to its
growth, and to establish the analytical basis for subsequent
investigations of specific areas. |
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