Economic Growth in Latin America
July 1, 1991
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Summary
This paper studies growth determinants in 12 Latin American countries during the period 1950-85. In a simple growth accounting framework, the share of labor in income is found to be lower in the sample group than in developed countries, while factor productivity growth accounts for a larger proportion of growth in the fastest growing countries in the sample. Using panel data, macroeconomic stability is found to play, in addition to investment (physical and human), a crucial role in growth. To a lesser extent, growth is negatively correlated with government consumption and political instability. The terms of trade appear to have no significant effect on growth.
Subject: Balance of payments, Foreign direct investment, Government consumption, Inflation, International trade, National accounts, Prices, Production, Productivity, Terms of trade
Keywords: Caribbean, constant returns to scale, Foreign direct investment, Government consumption, government spending, Inflation, investment equation, per capita income, positive correlation, Productivity, productivity growth, rate of growth, rate of inflation, Terms of trade, WP
Pages:
58
Volume:
1991
DOI:
Issue:
071
Series:
Working Paper No. 1991/071
Stock No:
WPIEA0711991
ISBN:
9781451959758
ISSN:
1018-5941
