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On the evolution of TFP in Latin America

Author

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  • Ferreira, Pedro Cavalcanti
  • Pessôa, Samuel de Abreu
  • Veloso, Fernando A.
Abstract
Due to several policy distortions, including import-substitution industrialization, widespread government intervention and both domestic and international competitive barriers, there has been a general presumption that Latin America has been much less productive than the leading economies in the last decades. In this paper we show, however, that until the late seventies Latin American countries had high productivity levels relative to the United States. It is only after the late seventies that we observe a fast decrease of relative TFP in Latin America. We also show that the inclusion of human capital in the production function makes a crucial diference in the TFP calculations for Latin America.

Suggested Citation

  • Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2011. "On the evolution of TFP in Latin America," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 723, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    • Handle: RePEc:fgv:epgewp:723
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    3. Alexandre Gori Maia & Arthur Sakamoto, 2016. "Occupational Structure And The Sources Of Income Inequality: A Comparison Between Brazil And The U.S," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 234, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Flôres Junior, Renato Galvão, 2006. "Dois ensaios sobre diversidade cultural e o comércio de serviços," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 622, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    5. Miguel Santos, 2016. "The Right Fit for the Wrong Reasons: Real Business Cycle in an Oil-dependent Economy," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 53(1), pages 61-94, December.
    6. Araújo, Fabio & Issler, João Victor & Fernandes, Marcelo, 2006. "A stochastic discount factor approach to asset pricing using panel data," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 628, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    7. Mendez-Guerra, Carlos, 2014. "On the Development Gap between Latin America and East Asia: Welfare, Efficiency, and Misallocation," MPRA Paper 62588, University Library of Munich, Germany.
    8. Hernández Manuel A., 2015. "Endogenous Trade, Nontraded Goods and Real Exchange Rate Variations," Working Papers 2015-07, Banco de México.
    9. Zhijie Xiao & Luiz Renato Lima, 2007. "Testing Covariance Stationarity," Econometric Reviews, Taylor & Francis Journals, vol. 26(6), pages 643-667.
    10. Flôres Junior, Renato Galvão, 2006. "The diversity of diversity: further methodological considerations on the use of the concept in cultural economics," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 626, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    11. Lima, Luiz Renato & Gaglianone, Wagner Piazza & Sampaio, Raquel M.B., 2008. "Debt ceiling and fiscal sustainability in Brazil: A quantile autoregression approach," Journal of Development Economics, Elsevier, vol. 86(2), pages 313-335, June.
    12. Carlos Gustavo Machicado Salas, 2018. "De Las Causas Próximas A Las Causas Profundas Del Crecimiento Económico De Bolivia Entre 1950 Y 2015," Development Research Working Paper Series 09/2018, Institute for Advanced Development Studies.

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