Fconomlc Growth TbdolEd

The Nomrliad CoiiEeElion velor in Tobl. 5 | shoss lhe posiiive MtuE of elaidnship
bc$en insliotiots und grcwrh. Ale lhee is I posniv€ EhiioBhip beN@n op€nne$ and
gro*d, od eSrriv. Ehtionship betwe. inn.don &d so*d
r.t* sr: 'gfiot d cah.rtdd da
as expei'd'
OG rhe Mlud ofoinLgririm is eilblis!.tt wc csrim.r6 vEcM mo'l€ls otcqDario 4 tnd
5. Ar dplaincd arlicr, lhis EgE$ion €plutul nd mlv El4liodtltip wilh i'ittF dcnt
v&iables tut rl$ copturcd clEnse in disquilibrium cmr @DtuG b, BCT Sp@incollv lhe
nd diuercnca of{llinlelolad tdiableE is the |unclion orth€n hsged di'I'ftn€' 6 well as
lagecd ECl . ln this sp4! siE tne ECT b s[lioMrv tll olhs vsntbbs @ ttso sElimry'
-ftis inpli6 tll{ Ol,S surlrnl e|]c vill tl$ bc @si!'nr md cfficidl
rot .52: t@Nry ai ar@dor 6nnt tNetry,*
Table 52 disphys Bullt of insliffio grcwth coueltv fd both shon run s w'll 6 loDg dn
fie Fsux cl.ony shows sisrifiul nesstilc ECT .effciqt lor cqulion 4, whcE6 pdilive
i.sierifi@t dlfici.nt fd oqurid 5 This surpsrs a log on uniiierioMl aNlitv
trming flm inditulio6 io 3owrh. Howd6, m log M gtuUd auelitt wG fond in
ogposir. didior. Ilcroc! iEtituii@l qulily GdnSer clls gb$rh in thc log m hr
Crcwlh dcs ndr e!$ in$iffional quality h long m This suppons thc imDorLne of