A century of economic growth in Latin America

This paper makes a contribution to the study of economic growth in developing countries by analyzing the six largest Latin American economies over 105 years within a two-equation framework. Confirming previous findings, physical and human capital prove to be key determinants of GDP per head growth. However, a more controversial result is an overall negative conditional correlation between trade openness and GDP per head growth though openness has a positive link via investment. The evidence also shows that macroeconomic instability has been a drag on long-term growth in the region. (C) 2009 Elsevier B.V. All rights reserved.