A Century of Economic Growth
in Latin America*

Pablo Astorga

Senior Economist at Oxford Economics
Abbey House, Carfax, Oxford, OX1 1HB, England

and

Associate Researcher at Instituto Figuerola
Universidad Carlos III, C/ Madrid, 126, 28903 Getafe, Madrid España

<[email-masked]>

98 Sunningwell Road, Oxford, OX1 4SY

Abstract

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 classifications: F43; N26; O11

JEL keywords: Economic Growth; Investment; Openness; Latin America

* The paper benefited from comments by Valpy FitzGerald, Leandro Prados, Antonio Tena, Leonardo Vera and an anonymous referee. The author also thanks participants to a economic history seminar held at the University Carlos III in Madrid and to the LACEA meeting in Paris for helpful ideas.