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When Did Latin America Fall Behind?.Evidence From Long-Run International Inequality

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  • Leandro Prados de la Escosura

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Abstract

When did Latin America fall behind?. Has the gap between developed countries and Latin America widened over time?. This paper addresses these recurrent questions with the tools provided by the inequality literature. Long-run inter-country inequality is assessed in terms of real (purchasing power-adjusted) GDP per head and of an ‘improved’ human development index as an indicator of welfare for present-day OECD and Latin America. A long term rise in income inequality is observed for this sample of countries with the deepening gap between OECD and Latin America as its main determinant. Contrary to a widespread view, in terms of income, Latin America fell behind in the late twentieth century. Inequality in terms of human development declined over time, but the gap between OECD and Latin America remained largely unchanged.

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Paper provided by Universidad Carlos III, Departamento de Historia Económica e Instituciones in its series Working Papers in Economic History with number wh046604.

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Date of creation: Dec 2004
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Handle: RePEc:cte:whrepe:wh046604

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  1. > Economic History > Regional Economic History > Latin American Economic History
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Cited by:
  1. Pablo Astorga, 2007. "Real Exchange Rates in Latin America: what does the 20th Century reveal?," Working Papers in Economic History wp07-03, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  2. Leandro Prados de la Escosura, 2005. "Growth, Inequality, And Poverty In Latin America: Historical Evidence, Controlled Conjectures," Working Papers in Economic History wh054104, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  3. Pablo Astorga & Ame E. Bergés & Valpy Fitzgerald, 2005. "Endogenous Growth and Exogenous Shocks in Latin America during the Twentieth Century," Oxford University Economic and Social History Series _057, Economics Group, Nuffield College, University of Oxford.
  4. Luis Bertola & Maria Camou & Silvana Maubrigades & Natalia Melgar, 2008. "Human development and inequality in the 20th Century : the Mercosur countries in a comparative perspective," Working Papers in Economic History wp08-06, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  5. Astorga, Pablo, 2012. "Mean reversion in long-horizon real exchange rates: Evidence from Latin America," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1529-1550.
  6. Enriqueta Camps, 2009. "Globalization and culture shaping the gender gap: A comparative analysis of urban Latin America and East Asia (1970 - 2000)," Economics Working Papers 1145, Department of Economics and Business, Universitat Pompeu Fabra.

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