Endogenous Growth and Exogenous Shocks in Latin America During the Twentieth Century
Using a new database for the whole 1900-2000 period, this paper estimates the relative contribution of endogenous and exogenous factors in GDP and productivity growth in each of the six larger Latin American economies with multivariate annual models, and complements these with a single aggregate model using panel data by decade to test for convergence within the region and with the US. Our method is innovative as it includes external economic shocks as well as endogenous growth variables. The main findings are: (i) that investment contributed most to growth during the middle of the century when the region was relatively closed to the world economy and state was proactive; (ii) that the six main economies did converge considerably over the century due to improvements in resource allocation, advances in health and education and increased investment effort; (iii) that these improvements were not, however, enough to produce convergence between Latin America and US; and (iv) that terms of trade volatility, trade and interest rate shocks were a major obstacle to both sustained economic growth and catching up.
|Date of creation:||01 Mar 2005|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- Pablo Astorga & Ame R. Bergés & Valpy Fitzgerald, 2003.
"Productivity Growth in Latin America during the Twentieth Century,"
Oxford University Economic and Social History Series
_052, Economics Group, Nuffield College, University of Oxford.
- Valpy Fitzgerald & Pablo Astorga, 2003. "Productivity Growth in Latin America during the Twentieth Century," Economics Series Working Papers 2003-W52, University of Oxford, Department of Economics.
- Antonio E. Noriega & Araceli Ramírez-Zamora, 1999. "Unit roots and multiple structural breaks in real output," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 14(2), pages 163-188.
- Eliana A. Cardoso & Albert Fishlow, 1989. "Latin American Economic Development: 1950-1980," NBER Working Papers 3161, National Bureau of Economic Research, Inc.
- Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
- Prados de la Escosura, Leandro, 2004. "When did Latin America fall behind? : evidence from long-run international inequality," IFCS - Working Papers in Economic History.WH wh046604, Universidad Carlos III de Madrid. Instituto Figuerola.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:2005-w57. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Birds)
If references are entirely missing, you can add them using this form.