Capital account liberalization and economic growth evidences from data in Latin-American panel

Abstract

The aim of this paper is to carry out an empirical analysis about the relation between Capital Account Liberalization and Economic Growth having as object of study the experience of l6 countries of latin America with annual data for the period 1986-2000. The econometrical calculations do not corroborate the hypothesis that the liberalization of Capital Account would stimulate the economic growth. The results suggest an adverse effect of the liberalization of Capital Account on the real growth gross domestic product per capita of the countries.

JEL Classification: F33; F36; F43.