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On the Latin American Growth Paradox: A Hindsight into the Golden Age

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  • Giorgia Barboni
  • Tania Treibich

Abstract

In 1950, Latin American countries capabilities were promising, and the subcontinent was thought to have a big potential for convergence. In order to understand why this prediction was not fullled, we apply in this paper the framework set by Fagerberg and Srholec (2008). Our study of the economic evolution of Latin America during the Golden Age (1950-1975) is based on historical data on economic, political and social variables from 18 countries. We use a factor analysis to classify our 20 indicators into ve dimensions: the level of "industrialization", "human capital", the "macroeconomic fundamentals", "politics" and "religion". We nd that only the quality of human capital and the presence of Roman Catholics signicantly and positively aected Latin American economic growth in this period, while the determinants traditionally put forward in the empirical growth literature, such as technical change and openness, did not. Finally, the positive correlation between the religion and education variables reveals that this result is partly related to the role of the Catholic Church as an educational institution.

Suggested Citation

  • Giorgia Barboni & Tania Treibich, 2010. "On the Latin American Growth Paradox: A Hindsight into the Golden Age," LEM Papers Series 2010/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2010/21
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    References listed on IDEAS

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    1. Fagerberg, Jan & Srholec, Martin & Knell, Mark, 2007. "The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind," World Development, Elsevier, vol. 35(10), pages 1595-1620, October.
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    Cited by:

    1. Domingo Rodríguez Benavides & Ignacio Perrotini Hernández & Miguel Ángel Mendoza González, 2014. "Economic Growth and Convergence in Latin America, 1950-2010," Monetaria, Centro de Estudios Monetarios Latinoamericanos, CEMLA, vol. 0(2), pages 253-284, July-Dece.
    2. Luigi Aldieri & Giuseppina Autiero, 2013. "Religious values, secular education and development:empirical evidence from some Latin American countries," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 5(1), pages 15-32, June.

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    Keywords

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    JEL classification:

    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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