Economic openness and growth: a panel-data analysis for Latin America, 1990-2020
DOI:
https://doi.org/10.33110/rnee.v20i2.378Keywords:
Economic growth, trade openness, financial openness, Latin AmericaAbstract
the objective of this research is to verify the existence of a link between economic growth and economic openness in nine Latin American economies—Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Mexico, Peru, and Paraguay— from 1990 to 2020. With a paneldata structure, an econometric model based on the PMGARDL technique is developed. Its results indicate a positive relationship between trade openness and economic growth. However, the labor factor and human capital have a more pronounced effects on economic growth, whereas the stock of capital and the stock of foreign direct investment exhibit a weak influence. Notably, financial openness shows a negative effect on economic growth, although its impact is the smallest among the mentioned variables.
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