Open AccessDemographic Dividends and Economic Growth in Latin America
Author(s) -
Ignacio Apella
Publication year - 2021
Publication title -
económica/económica
Language(s) - English
Resource type - Journals
eISSN - 1852-1649
pISSN - 0013-0419
DOI - 10.24215/18521649e020
Subject(s) - demographic dividend , economics , latin americans , middle income trap , investment (military) , productivity , demographic economics , per capita , dividend , demographic transition , per capita income , total fertility rate , fertility , panel data , development economics , macroeconomics , econometrics , geography , population , demography , research methodology , political science , archaeology , finance , china , sociology , politics , family planning , law
The objective of this paper is to analyze the possibility of a low and middle-income trap for the Latin American countries due to demographic changes. Based on the use of a panel data from 16 countries during the period from 1970 to 2014, it is identified that the growth of GDP per capita is related with the first demographic dividend. However, given the dynamics of the fertility rate, we identify a latent risk of low and middle-income trap equilibrium in the long term unless there is an increase in the saving rate, investment and, therefore, the long-term productivity.