Research Note: Tourism and Economic Growth in Latin American Countries – Further Empirical Evidence

2011 ◽  
Vol 17 (6) ◽  
pp. 1365-1373 ◽  
Author(s):  
Bichaka Fayissa ◽  
Christian Nsiah ◽  
Bedassa Tadesse
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Empirical Models ◽  
Tourism Industry ◽  
Neoclassical Growth Model ◽  
Short Run ◽  
Per Capita ◽  
The Impact ◽  
Latin American Countries ◽  
Neoclassical Growth

Using panel data that span from 1990 to 2005, the authors investigate the impact of tourism on the economic growth of 18 heterogeneous Latin American countries within the framework of the conventional neoclassical growth model. Results from the empirical models show that revenues from the tourism industry contribute positively to both the current level and the growth rate of the per capita GDP of the countries in the region, as do investments in physical and human capital. The findings imply that Latin American economies may enhance their economic growth in the short run by strengthening their tourism industries strategically, while not neglecting the traditional sources of economic growth.

scholarly journals Does FDI promote Economic Growth and Development? Evidence from Latin America and Africa

2015 ◽  
Vol 44 (1) ◽  
pp. 34-52
Author(s):  
Mohammed Seid Hussen
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Latin American ◽  
Positive Impact ◽  
Absorption Capacity ◽  
Transport Infrastructure ◽  
Panel Regression ◽  
Economic Policies ◽  
The Impact ◽  
Latin American Countries

This paper is an attempt to analyse and empirically estimate the impact of FDI on economic growth and human development of Africa and Latin American countries for the period 1985–2011. To this end we develop two equations: growth and human development. Our findings, based on fixed effect panel regression, thus, suggest that FDI does not have a positive impact on economic growth but it has significant positive impact on human development. We conclude that for FDI to be a noteworthy provider to economic growth, it is important to increase absorption capacity by improving the level of democracy, increasing and improving transport infrastructure and following appropriate economic policies. Our results are found to be robust across approach, model specifications and statistical test.

scholarly journals Capital Formation in Machinery in Latin America, 1890-1930

2009 ◽  
Vol 69 (4) ◽  
pp. 928-950 ◽  
Author(s):  
Xavier Tafunell
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Latin American ◽  
Rapid Growth ◽  
Capital Formation ◽  
Annual Series ◽  
Per Capita ◽  
Latin American Countries

Investment in machinery is a key component in the analysis of long-term economic growth during the spread of industrialization. This article offers consistent annual series on the magnitude of machinery imports per capita into all Latin American countries for the period 1890-1930. Analysis of these series shows that machinery imports diverged across countries from 1890 through 1913. After 1913 a number of the more backward countries experienced rapid growth in machinery imports. These large differences in machinery investment contributed to unequal development across the Latin American countries.

Growth, Inequality and Poverty in Selected Caribbean and Latin American Countries, with Emphasis on Guyana

1998 ◽  
Vol 30 (3) ◽  
pp. 591-617 ◽  
Author(s):  
JOHN GAFAR
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Latin American ◽  
Human Development Index ◽  
Direct Relationship ◽  
Poverty Line ◽  
Level Of Education ◽  
The Poor ◽  
Per Capita ◽  
Latin American Countries

The statistical evidence surveyed suggests that as an indicator of development the Human Development Index is directly related to the level of per capita income; that inequality is countercyclical; and that economic growth is poverty reducing. In the case of Guyana the data suggest that nearly 43 per cent of the population were below the poverty line (approximately US$1 per day per person); that poverty is predominantly rural; that most of the poor seek employment in agriculture or in the informal (self employed) sector; and that there is a direct relationship between the level of education, health and poverty.

scholarly journals Innovation and Economic Growth in Emerging Latin American Countries: The Case of Mexico, Brazil and Chile

2015 ◽  
Vol 2 (4) ◽  
pp. 17-27
Author(s):  
Edgar J. Saucedo A ◽  
Marisol Borges Q
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Innovation Process ◽  
Developed Countries ◽  
Emerging Countries ◽  
Complex Process ◽  
Government Education ◽  
The Impact ◽  
Latin American Countries ◽  
Research Centres

Over recent years, several theoretical and empirical research projects (from developed countries) have studiedinnovation as a complex process involving participation, interaction and interrelationship of actors (organizations, individuals, businesses) and institutions (government, education, research centres) as elements of a collective system that contribute and influence the innovation process. In addition, such research shows how innovation has impacted positively on the economic growth of nations.In order to understand the functioning of the National Innovation Systems in emerging countries (Mexico, Brazil and Chile), we performed a critical analysis of the approach, examining their application limitations and recognising the characteristics and interests of Latin American countries. Furthermore, we analysed the impact of innovation on economic growth in these countries. The aim of this paper is to analyse whether the differences in economic growth among Mexico, Chile and Brazil, are explained by gaps in levels of innovation.

scholarly journals How is the dynamic impact of Undervaluation on Economic Growth in Latin American Countries?: A Panel VAR analysis

2020 ◽  
Author(s):  
CESAR CHAVEZ
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Latin American ◽  
Panel Var ◽  
Causality Test ◽  
Vector Autoregressive ◽  
The Real ◽  
Per Capita ◽  
Latin American Countries

Abstract In this research, I analyze the dynamic effects of undervaluation on the economic growth per captai of Latin American countries with a period 1980-2018. To estimate these effects, I use a Panel Vector Autoregressive (PVAR) whose estimator is System GMM. The undervaluation variable is created from different measures of the real exchange rate and I also use various measures of GDP per capita to calculate economic growth per capita. I include as control variables macroeconomic and human capital variables to control the different channels of spread of undervaluation on economic growth per capita. The results show that there is a positive effect depending on the definition of the real exchange rate used to calculate the undervaluation. In the results I include the Granger causality test, stability test and impulse response graphs in which I project the response of per capita economic growth to an undervaluation shock.

scholarly journals The Role of Human Capital in Economic Growth: A Comparative Study of Pakistan and India

2000 ◽  
Vol 39 (4II) ◽  
pp. 451-473 ◽  
Author(s):  
Qaisar Abbas
Keyword(s):  
Economic Growth ◽  
Formal Model ◽  
Adam Smith ◽  
Division Of Labour ◽  
Neoclassical Growth Model ◽  
The Past ◽  
Per Capita ◽  
Intellectual Challenge ◽  
Neoclassical Growth

Economic Growth has posed an intellectual challenge ever since the beginning of systematic economic analysis. Adam Smith claimed that growth was related to division of labour, but he did not link them in a clear way. After that Thomas Malthus developed a formal model of a dynamic economic growth process in which each country converge toward stationary per capita income. According to this model, death rates fall and fertility rises when income exceed the equilibrium, and opposite occur when incomes are less than that level. Despite the influence of the Malthusian model in nineteenth century economists, fertility feel rather than rose as income grew during the past 150 years in the west and other parts of the world. The Neoclassical growth model of Solow (1956), which has been for the past thirty years the central framework to account for economic growth, focuses on exogenous technical population factors that determine output-input ratios, responded to the failure of Malthusian model.

scholarly journals Do Remittances Promote Economic Growth and Reduce Poverty? Evidence from Latin American Countries

Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 35 ◽  
Author(s):  
E. M. Ekanayake ◽  
Carlos Moslares
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Latin American ◽  
Annual Data ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Latin American Countries ◽  
Positive Effect

In this study, we explore the hypotheses that (a) workers’ remittances enhance economic growth in Latin American countries, and (b) workers’ remittances help reduce poverty in Latin American countries. In recent decades, workers’ remittances have become an important source of income for many developing countries and, as a global aggregate, workers’ remittances are the largest source of foreign financing after foreign direct investment. This paper analyzes the effects of workers’ remittances on economic growth and poverty in 21 Latin American countries. The study uses annual data covering all Latin American countries for the period 1980–2018. We employ panel least squares and panel fully-modified least squares (FMOLS) methods. In addition, we estimate the short-run and long-run effects of workers’ remittances on economic growth and poverty on individual countries with the Autoregressive Distributed Lag (ARDL-ECM) approach to co-integration analysis. The results reveal that workers’ remittances have a positive effect on long-run economic growth in the majority of the countries studied, but have mixed effects in the short-run. They also suggest that workers’ remittances tend to lower poverty rates in Latin America.

scholarly journals Relationship between FDI, Foreign Exchange Earnings through Inbound Tourism and Growth of Indian Economy

2019 ◽  
Vol 8 (4) ◽  
pp. 5096-5102
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Tourism Industry ◽  
Influential Factor ◽  
Indian Economy ◽  
Distributed Lag ◽  
Inbound Tourism ◽  
Short Run ◽  
Per Capita

Foreign Direct Investment (FDI) has been playing a crucial role in the development of Indian economy ever since liberalization.The role of FDI, hence, can be discussed from the point of one of much deliberated sectors, tourism, in this case. The current study, thus, is based on investigating an association between FDI, Foreign Exchange Earnings from tourism and per capita growth with respect to Indian economy for a period of 1996-2018. The analysis proves a cointegrating relationship between them throughAuto Regressive Distributed Lag (ARDL) Modelling Approach. It proves FDI to be an influential factor in enhancing foreign exchange earnings from tourism for inbound tourism industry and per capita economic growth. Through Error Correction Model, it is proved that the modelscancorrect seventy-seven- and eighty-three percent imbalances in short run. Applying Granger Causality approach, the study proves per capita economic growth granger causes FDI. Subsequently,is playing a major role in attracting foreign exchange earnings from inbound tourism in India.Finally, the study suggests certain policy measures for enhancing per capita growth that will ultimately promote FDI to augment conditions of tourism industry in Indian economy.

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