UNU-MERIT Working Papers Series

Do institutions and ideology matter for economic growth in Latin America in the first two decades of the 21st century?

Pamela L. Navarrete Gallo & Jo Ritzen #2021-012

Institutions have a positive, strong and significant impact on GDP growth; in 20 Latin American countries between 2002 and 2018. Government size has a negative impact on GDP growth itself but, in interaction with strong institutions, the effect of government size on growth turns to positive and significant, while political ideology has no significant effect on economic growth.

Keywords: Economic growth, Institutions, Government Size, Political ideology, Latin America

JEL Classification: F43, N26, O11

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