Economic growth in Latin America: An approach from Kaldor’s perspective (1980–2023)
DOI:
https://doi.org/10.54167/ejbei.v3i1.1960Keywords:
Kaldor´ s laws, Manufacturing sectorAbstract
This article analyzes the influence of the manufacturing sector on economic growth in Latin American economies, based on Kaldor’s three laws. Using a panel data methodology for 12 countries from 1980 to 2023, the study empirically tests the relationships proposed by Kaldor between manufacturing output and overall productivity. The findings confirm the theoretical propositions of increasing returns to scale in the manufacturing sector and its positive externalities on non-manufacturing productivity. These results underscore the strategic role of the manufacturing industry as a growth engine for Latin America and support the relevance of demand-oriented approaches for explaining long-term economic development.
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