Technological progress, capital acumulation and economic growth in Latin America

Abstract

This paper displays an analysis of the economic growth rates of Argentina, Brazil, Chile and Mexico during the period 1961-2017. Explanations related to total factor productivity and to capital accumulation are here contrasted in a context of growth external constraint. The following conclusiones are reached on empirical grounds: Technological progress is an endogenous variable reacting to variations in aggregate demand necessary to fulfill the dynamic equilibrium of the trade balance; growth rates in those countries are closely linked to the growth rate of their economic capacity; the process of growth acceleration in these economies corresponded to high rates of capital accumulation.