A Century of Economic Growth in Latin America

Jan 2009 | 075

Authors: Pablo Astorga

This paper makes a contribution to the study of economic growth in developing countries by analysing the six largest Latin American Economies over 105 years within a two-equation framework. Confirming previous findings, physical and human capital prove to be key determinants of GDP per capita growth.  However, a more controversial result is an overall negative conditional correlation between trade openness and GDP per head growth - though openness has a positive link via investment. The evidence also shows that macroeconomic instability has been a drag on long-term growth in the region.

JEL Codes: F43, N26, O11

Keywords: Economic Growth, Investment, Openness, Latin America

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