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Demographic Dividends and Economic Growth in Latin America. A Low and Middle-Income Trap Equilibrium

Author

Listed:
  • Ignacio Apella

    (Human Development Department for Latin America and the Caribbean, World Bank.)

Abstract

The objective of this paper is to analyze the possibility of a low and middle-income trap for the Latin American countries due to demographic changes. Based on the use of a panel data from 16 countries during the period from 1970 to 2014, it is identified that the growth of GDP per capita is related with the first demographic dividend. However, given the dynamics of the fertility rate, we identify a latent risk of low and middle-income trap equilibrium in the long term unless there is an increase in the saving rate, investment and, therefore, the long-term productivity

Suggested Citation

  • Ignacio Apella, 2021. "Demographic Dividends and Economic Growth in Latin America. A Low and Middle-Income Trap Equilibrium," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 67, pages 48-68, January-D.
    • Handle: RePEc:lap:journl:630
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    File URL: https://revistas.unlp.edu.ar/Economica/article/view/8005/12166
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    More about this item

    Keywords

    demographic dividends; economic growth; support ratio;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • J1 - Labor and Demographic Economics - - Demographic Economics

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