Determinants of Inclusive Economic Growth in Latin America

Abstract

The work aims to identify the determinants that influence inclusive economic growth in Latin America. The study’s methodology is quantitative with a nonexperimental design, for whose effect analysis was developed through a panel data model to identify the determinant variables of inclusive economic growth. Annual data of the main macroeconomic and social variables were used for a sample of 14 Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Panama, Paraguay, Peru, and Uruguay); the study horizon comprises 25 years, between 1995 and 2019. The following variables were found to have a direct influence on inclusive economic growth: public spending and international trade; the study also showed that inflation, unemployment, and the presence of crises have a negative impact on inclusive economic growth. Moreover, an additional public expenditure of 1% implies an increase of 0.100% in inclusive economic growth, and for each positive variation of 1% in international trade, inclusive economic growth responds with an increase of 0.144%.

Untitled

“…Además, la utilización de datos de panel para estudiar el crecimiento económico inclusivo es un tema recurrente. Angulo-Bustinza et al (2023), utilizando un enfoque cuantitativo no experimental, identifican los determinantes del crecimiento económico inclusivo en América Latina. Utilizaron un modelo de datos de panel para evaluar el impacto de diversas variables sobre el crecimiento económico inclusivo en 14 países de América Latina en un período de 25 años , y los resultados indican que el gasto público y el comercio exterior tienen una influencia positiva sobre el crecimiento económico inclusivo, mientras que la inflación, el desempleo y las crisis tienen efectos negativos.…”