Education, research, and development expenditure is the best way to competitiveness—a panel data approach for Latin American Countries.

This paper investigates the impact of variations in Research and Development Spending and Education Expenditure on GDP variations in Latin America during the period between 2000 and 2019 (20 years). The dependent variable for productivity and competitiveness is the Gross Domestic Product GDP per capita adjusted for purchasing power parity. GDP per capita, the broadest measure of national productivity, is closely linked over time to a nation's standard of living. The econometric model proposed uses the Prais-Winsten methodology and corrected standard errors and first-order autocorrelation correction. We concluded that the variations in spending on education and research and development have a significant and direct effect on the competitiveness and productivity represented in the analyzed GDP. Therefore, the Latin American countries studied (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, and Uruguay) are recommended to invest in education, research, and development, not only as a government effort but also as a policy of all sectors. This paper represents a methodological novelty and suggests directions for national systemic competitiveness policies. [ABSTRACT FROM AUTHOR]