Economic growth, economic complexity, and carbon dioxide emissions: The case of Colombia.

This paper aims to validate the hypothesis of an Environmental Kuznets Curve (EKC) for Colombia, introducing the Economic Complexity Index (ECI) into the analysis as a differentiating element of production volumes. We use a Vector Error Correction Model (VECM) to corroborate if there is a long-term relationship between the variables covering the period between 1971-2014. Also, we test the robustness of the results using three different techniques: Dynamic Least Squares, Fully Modified Least Squares, and Canonical Cointegration Regression. The results show that for a developing country like Colombia, the EKC does not exist, and does not yet benefit from increases in economic complexity. Arguably, the country has several hurdles to overcome before achieving the environmental benefits of increased product sophistication. Some of them could be related to the country's own productive and institutional rigidities, which opens the space for public policy intervention.

Are average years of education losing predictive power for economic growth? An alternative measure through structural equations modeling.

The accumulation of knowledge required to produce economic value is a process that often relates to nations economic growth. Some decades ago many authors, in the absence of other available indicators, used to rely on certain measures of human capital such as years of schooling, enrollment rates, or literacy. In this paper, we show that the predictive power of years of education as a proxy for human capital started to dwindle in 1990 when the schooling of nations began to be homogenized. We developed a structural equation model that estimates a metric of human capital that is less sensitive than average years of education and remains as a significant predictor of economic growth when tested with both cross-section data and panel data.