A two-day training workshop on the Long-Term Growth Model (LTGM) was delivered to Malaysian officials from the Ministry of Economic Affairs, Ministry of Finance, Department of Statistics Malaysia, Malaysia Productivity Corporation, and Bank Negara Malaysia on September 5-6, 2019. The training was conducted by researchers from the Development Research Group of the World Bank: Jorge Guzman, Young Eun Kim, Norman V. Loayza and Steven Pennings.
The LTGM is a World Bank tool for analyzing long-term growth scenarios and has been designed to support policymakers who are working on medium- to long-term strategy exercises. The workshop covered an introduction to the standard version of the LTGM, including both theory and practice, followed by theoretical overviews and hands-on sessions for each of the main extensions to the model: the Public Capital Extension; the Human Capital Extension; and the Total Factor Productivity Extension. Participants used the LTGM extensions to carry out exercises to analyze the future long-run growth in Malaysia under a baseline scenario, and then the effects of various shocks to the baseline.