Author

Julia Godfrey

Date of Award

2020

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Khemraj, Tarron

Area of Concentration

Economics

Abstract

This thesis estimates an augmented Solow growth model for Jamaica. This model seeks to understand the relationship between foreign direct investment and economic growth as well as estimate total factor productivity (TFP). We make use of an ARDL model to examine the long run and short-run estimates of the growth equation. We find that the relationship between FDI and GDP is negative but not statistically significant. Additionally, we find the TFP output to be reflective of the country’s history with debt and financial crises. This analysis, paired with an overview of Jamaica’s economic and political history, will pave the way for informed policy.

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