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Life is Unfair in Latin America, But Does it Matter for Growth?

  • Blanco, Luisa
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    Summary I analyze the effect of inequality on economic growth in Latin America, where inequality is measured as the area of family farms as a percentage of the total area of agricultural holdings. Using data from 18 Latin American countries during 1960-2004, I find that inequality has a nonlinear effect on economic growth. Overall, for the countries included in this analysis, the share of family farms has a positive significant effect on economic growth. These findings are robust to controlling for several factors, using a different indicator of inequality (land Gini), and addressing for endogeneity.

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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4XJP5YP-2/2/e41065824559a32691c12b36dd96d01b
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 38 (2010)
    Issue (Month): 3 (March)
    Pages: 393-404

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    Handle: RePEc:eee:wdevel:v:38:y:2010:i:3:p:393-404
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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