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dc.contributor.authorPerry, Nathanen_US
dc.contributor.authorSchönerwald, Carlosen_US
dc.date.accessioned2012-09-28T12:39:57Z-
dc.date.available2012-09-28T12:39:57Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/64459-
dc.description.abstractRecent World Bank reports indicate that the world has seen a severe reduction in poverty, representing not just a cutback in the relative incidence of poverty but a significant decline in the total number of poor” people. However in Latin America, the incidence of poverty has remained approximately constant, while the number of poor people has increased. Because of this it is important to understand why Latin America is not making the same strides that the rest of the world is in terms of poverty reduction. It is also necessary to understand how Latin American countries can achieve a long-term economic development to both reduce poverty and improve income inequality. Since long-term economic development is a complex phenomenon, the paper focuses on three deep” determinants: geography, integration, and institutions. Traditionally, authors study the impact of institutions, integration and geography on per capita income using worldwide cross-section data. Conversely, this paper employs the Hausman and Taylor (1981) estimator to examine the influence of these three determinants on per capita income in Latin American countries. That longitudinal econometric method allows us to consider unobserved heterogeneity across countries and to obtain direct parameter estimates of the time invariant independent variables, like geography or some institutional measures. Our results demonstrate that not just the quality of institutions, as much of the previous literature has claimed, but also the terms of trade both have strong impacts on per capita income. Once institutions are controlled for, measures of geography have relatively weak direct effects on incomes. Similarly, once institutions are controlled for, we find that both openness to trade and appreciated real exchange rates are detrimental to growth.en_US
dc.language.isoengen_US
dc.publisherUniv. of Utah, Dep. of Economics Salt Lake City, Utahen_US
dc.relation.ispartofseriesWorking Paper, University of Utah, Department of Economics 2009-04en_US
dc.subject.jelN1en_US
dc.subject.jelO1en_US
dc.subject.jelH1en_US
dc.subject.jelF1en_US
dc.subject.ddc330en_US
dc.subject.keywordInstitutionsen_US
dc.subject.keywordDevelopmenten_US
dc.subject.keywordOpennessen_US
dc.subject.keywordGeographyen_US
dc.subject.keywordPanel Dataen_US
dc.subject.keywordLatin Americaen_US
dc.titleInstitutions, geography, and terms of trade in Latin America: A longitudinal econometric analysisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn601679547en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Department of Economics Working Paper Series, University of Utah

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