Economic Growth: Panel Data Evidence from Latin America
This paper is concerned with the impacts of various growth determinants on the per capita growth rate in Latin America. The choice of explanatory variables is based on the framework proposed by Barro and Sala-i-Martin (1999). Panel data technique is used to estimate the growth regression using data on seventeen Latin American countries from 1952 to 2000. The regression results show evidence of conditional convergence among the countries studied, pointing to the need for an upward shift in the steady-state level of the region. The results indicate that per capita growth in Latin America increases with an increase of the life expectancy, openness and investment. On the other hand, the initial level of GDP per capita, government spending and the polity score are found to be negatively related to the per capita growth rate. A puzzling finding is that schooling is not a significant determinant for growth in Latin America.
School Location:USA - Ohio
Source Type:Master's Thesis
Keywords:economic growth latin america convergence determinants
Date of Publication:01/01/2005