Analysis of the total factor productivity in South America 1950-2014

Abstract

The aim of the research was to analyze the total productivity of the factors in the region of South America applying the expanded Solow-Swan model according to the proposal of Mankiw et al. (1992). In this sense, the production function was used under the approach of the expanded Solow-Swan model, to obtain the elasticities of the product with respect to the productive factors, for their further use in growth accounting. The results obtained suggest that these elasticities are mostly consistent with the assumptions of Mankiw et al. (1992), who argue that the result of including human capital in the Solow model (1956) would be that the participation of physical capital and population growth would have a greater impact on the population product or income. On the other hand, the growth accounting analysis shows that the main source of growth in the region has been the accumulation of productive factors, while productivity has not been a determining factor in terms of growth experience in South America during the studied period.