Benchmarking the Determinants of Economic Growth in Latin America and the Caribbean

The Latin America and Caribbean (LAC) region has seen a decade of remarkable growth and income convergence. Growth has been a key driver for reducing poverty and boosting shared prosperity. It has been debated how much of this decade of growth has been driven by policy reforms and how much was due to the favorable external conditions. While external factors were supportive and relevant, the effect of domestic policies was just as relevant for explaining LAC's recent growth performance. The emphasis of domestic policy has shifted from stabilization policies to structural policies. In addition, a benchmarking exercise reveals which policy gaps will lead to the highest potential growth-payoffs for each country and helps identify potential trade-offs. The authors analyze growth in LAC using descriptive statistics and growth econometrics. The authors use these results for explaining the pattern of growth in LAC over the last decade, for looking ahead, and to identify potential policy gaps.

Bibliographic Details

Main Authors:	Araujo, Jorge Thompson, Brueckner, Markus, Clavijo, Mateo, Vostroknutova, Ekaterina, Wacker, Konstantin M.
Format:	General Economy, Macroeconomics and Growth Study biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-12
Subjects:	ABSOLUTE VALUE, ACCOUNTABILITY, ACTUAL GROWTH, ADVERSE EFFECTS, AGGREGATE PRODUCTION FUNCTION, AGGREGATE SUPPLY, AGGREGATE SUPPLY CURVE, ANNUAL GROWTH, AVERAGE GROWTH, AVERAGE GROWTH RATES, AVERAGE INCOME, AVERAGE INCOME GROWTH, BANKING CRISIS, BENCHMARKING, BENCHMARKS, BUREAUCRACY, CAPITA INCOME GROWTH, CAPITAL ACCUMULATION, CAPITAL FORMATION, CAPITAL STOCK, CITIZENS, COMPETITIVENESS, COMPLEMENTARITIES, CORRELATION COEFFICIENT, CORRELATION COEFFICIENTS, CORRUPTION, COUNTRY LEVEL, COUNTRY REGRESSIONS, CREDIT CONSTRAINTS, CRISES, CURRENCY APPRECIATION, CYCLICAL REVERSION, DEPENDENT VARIABLE, DESCRIPTIVE STATISTICS, DETERMINANTS OF GROWTH, DEVELOPING COUNTRIES, DOMESTIC CONSUMPTION, DOMESTIC CREDIT/GDP, DOMESTIC DEMAND, DYNAMIC MODEL, DYNAMIC PANEL, ECONOMETRICS, ECONOMIC DEPRESSION, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, ECONOMIC GROWTH RATE, ECONOMIC THEORY, ECONOMICS, EDUCATIONAL ATTAINMENT, ELASTICITY, EMPIRICAL GROWTH LITERATURE, EMPIRICAL MODEL, EMPIRICAL STUDIES, ENDOGENOUS VARIABLES, ERROR TERM, ESTIMATED COEFFICIENT, ESTIMATED COEFFICIENTS, EXCHANGE RATE MISALIGNMENT, EXPLANATORY VARIABLES, EXPORTS, EXTERNAL CONDITIONS, EXTERNAL FACTORS, EXTERNAL SHOCKS, FACTOR ACCUMULATION, FINANCIAL CONDITIONS, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FISCAL POLICY, FIXED EFFECTS, FLUCTUATIONS, FORECASTS, GDP PER CAPITA, GOVERNANCE INDICATORS, GOVERNMENT CONSUMPTION, GOVERNMENT EFFECTIVENESS, GROWTH ACCOUNTING, GROWTH DETERMINANTS, GROWTH EFFECT, GROWTH EFFECTS, GROWTH EPISODE, GROWTH MEAN, GROWTH PERFORMANCE, GROWTH RATE, GROWTH RATES, GROWTH REGRESSIONS, GROWTH VOLATILITY, HIGH GROWTH, HIGH INCOME, HIGH INFLATION, HIGH TAXES, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN CAPITAL DEVELOPMENT, IMPROVING GOVERNANCE, INCOME GROWTH, INCOME LEVEL, INCOME LEVELS, INCOME PER CAPITA, INCREASE IN LABOR, INFLATION LEVELS, INFLATION RATE, INFLATION RATES, INFLATIONARY PRESSURES, INSTITUTIONAL ENVIRONMENT, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL PERFORMANCE, INSTITUTIONAL QUALITY, INSTITUTIONAL REFORM, INSTITUTIONAL REFORMS, INSTRUMENTAL VARIABLES, INTERACTION TERM, INTEREST RATES, LABOR FORCE, LABOR INPUT, LAGGED CHANGES, LAGGED DEPENDENT, LAGGED GROWTH, LAGGED LEVELS, LEVEL OF INCOME, LIQUIDITY, LIVING STANDARDS, LONG RUN, LONG-TERM GROWTH, LOW INFLATION, MACROECONOMIC CONDITIONS, MACROECONOMIC ENVIRONMENT, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MACROECONOMIC VOLATILITY, MACROECONOMICS, MARKET ECONOMIES, MEASUREMENT ERROR, MONETARY POLICY, NEGATIVE IMPACT, NEGATIVE IMPACT ON GROWTH, NEOCLASSICAL GROWTH MODEL, NEOCLASSICAL GROWTH MODELS, NEOCLASSICAL GROWTH THEORY, NET EXPORTS, OUTPUT PER CAPITA, PER CAPITA GROWTH, PER CAPITA INCOME, POLICY AREAS, POLICY DEBATE, POLICY REFORMS, POLICY VARIABLES, POLITICAL INSTITUTIONS, POLITICAL STABILITY, POOR COUNTRIES, POOR GROWTH, POTENTIAL OUTPUT, POVERTY REDUCTION, PRICE LEVELS, PRIMARY SCHOOL, PRIVATE DOMESTIC, PRO-POOR, PUBLIC FINANCES, PUBLIC INFRASTRUCTURE, PUBLIC SPENDING, REAL EXCHANGE RATE, REAL GDP, REDUCING POVERTY, REGRESSION MODEL, REGULATORY QUALITY, RICH COUNTRIES, SAFETY NETS, SERIAL CORRELATION, SIGNIFICANT EFFECT, SIGNIFICANT IMPACT, SOCIAL VARIABLES, STABILIZATION POLICIES, STABILIZATION POLICY, STAGNATION, STANDARD DEVIATION, STANDARD ERRORS, STRUCTURAL POLICIES, TECHNOLOGICAL PROGRESS, TELECOMMUNICATIONS, TELEPHONE LINES, TELEPHONES, TRADABLE SECTORS, TRADE OPENNESS, TRADE VOLUME/GDP, WEALTH,
Online Access:	http://documents.worldbank.org/curated/en/2014/12/23791726/benchmarking-determinants-economic-growth-latin-america-caribbean http://hdl.handle.net/10986/21318
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