Table 2

Growth and inflation in Latin America, 1950-85.”

Efficiency of
Dependent variable: Growth Investment investment
Regression: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Investment 0.136 0.121 0.127 0.148 -
(0.049) (0.045) (0.051) (0.048)
Literacy 0.060 0.049 0.955 0.058 0.173
(0.028) (0.025) (0.025) (0.027) (0.108)
Foreign 0.292 0.382 0.386 0.323 1.523 1.582
(0.149) (0.152) (0.166) (0.155) (0.432) (0.376)
Government - 0.092 - 0.065 - 0.097 - 0.087
consumption (0.056) (0.055) (0.057) (0.055)
GDP 1960s - 0.968 - 0.897 - 0.912 - 0.892 - 0.730 - 0.707 - 0.677 - 0.682 -
(0.203) (0.208) (0.195) (0.204) (0.259) (0.258) (0.241) (0.263)
Average - 0.831 - - 0.815 - - - - 0.274 - 1.805 -
inflation’ (0.192) (0.248) (0.383) (0.890)
Variance of - 0.799 - - - - 0.867
inflation’ (0.160) (0.236)
Ml growth’ - 0.981 - 0.860 - - - 0.574 - 3.294
(0.392) (0.4I 7) (0.666) (1.532)
Money base - - 1.237 - - - - 1.146 -
growthc (0.325) (0.383)
No. obs. 62 62 62 62 62 62 62 62 62 62 47 45
R2 0.46 0.49 0.43 0.46 0.26 0.28 0.18 0.22 0.04 0.04 0.20 0.21

‘Estimations done using panel data with random effects and White’s robust correction for the standard errors. Standard errors in parentheses. All
regressions include a constant term, which are not reported.
‘Variable multiplied by 10-s
‘Variables in log form and multiplied by IO-‘.