Search

This paper analyzes the convergence hypothesis and the impact of social policy on the economic growth of the six largest countries in Latin America between 1980 and 2010. Results suggest that social public policies have positively influenced growth in these economies. Particularly, there are non-observed variables (fixed effects) that positively affect the economic growth in Venezuela and Chile; however, there are other non-observed variables that may be negatively affecting growth in Brazil and Mexico. Regarding the convergence hypothesis, results reveal that the speed of convergence diminishes as real income rises, implying that these countries might be converging to their stable states. [ABSTRACT FROM AUTHOR]

This paper analyzes the hypothesis of regional convergence in Latin America through a non-linear growth model for the time period 1950-2010. The methodology combines three approaches: the threshold autoregressive model (tar), panel data unit root tests and calculating critical values with a bootstrapping simulation. The results of the tests applied to the per capita gross domestic product (gdp) of two groups of countries in Latin America (the wealthiest and then all nations in the region) suggest that the linear model is superior to the non-linear model and show no evidence of partial or absolute convergence. We did not identify a group of countries in the region with higher per capita income that would behave as a leading economy. Our results cast doubt on other studies conducted with linear tests that did find conditional convergence in some countries in the region. [ABSTRACT FROM AUTHOR]

This paper attempts to investigate the main factors behind Argentina's relative economic decline by comparing its evolution with that of Australia and Canada. For this purpose a ' reduced index of economic freedom' has been constructed in order to capture and summarise the principal macroeconomic trends in Argentina compared with the other regions of recent settlement during the period between 1875 and 2000. The results, obtained using cointegration and causality techniques, show how the macroeconomic policies that were implemented are able to explain the relative evolution of Argentina's economy, in terms of GDP per capita, over the long term. The results revise some of the interpretations prevalent in Argentine historiography. [ABSTRACT FROM AUTHOR]