Structural change, marginal land and economic development in Latin America and the Caribbean

Latin American Economic Review

Table 2 3SLS estimation of long-run growth, Latin America and Caribbean, 1990–2011

	Average annual real GDP per capita growth, 1990–2011 (N = 35)^a	% of rural population on less favored agricultural land, 2000 (N = 35)
Constant	9.0298 (4.081)**	42.894 (5.207)**
Log real GDP per capita, 1990	−1.0038 (−4.118)**
% of rural population on less favored agricultural land, 2000	−0.0554 (−2.334)*
Employment in industry (% of total employment), average over 5 years preceding 1990	0.1197 (3.324)**
Arable land (ha) per capita, average over 5 years preceding 1990		−10.017 (−0.747)
Gross fixed capital formation (% of GDP), average over 5 years preceding 1990	0.0001 (0.073)	−0.5884 (−2.055)*
Trade openness (exports + imports % of GDP), average over 5 years preceding 1990	0.0020 (0.406)
Population growth, average over 5 years preceding 1990	−0.0020 (−0.011)
Agricultural value added (% of GDP), average over 5 years preceding 1990		0.5542 (1.921)*
Political stability and absence of violence/terrorism, 1996–2011 average	0.7724 (2.457)*
Dummy for small island developing states	−1.0322 (−1.848)#	−13.936 (−2.205)*
Likelihood ratio test (β = 0)	26.10**	22.42**
Akaike information criterion (AIC)	0.1006	5.3613
Amemiya prediction criterion (APC)	0.1124	5.3647

* Significant at 95 % level
** Significant at 99 % level
# Significant at 90 % level
^aMean is 1.8 % and median is 1.7 %; t statistics are indicated in parentheses
^bMean is 26.9 % and median is 24.9 %; t statistics are indicated in parentheses. Instruments are the constant, GDP per capita in 1990, employment in industry, arable land per capita, gross fixed capital formation, openness, population growth, agricultural value added, political stability, dummy for small island developing states, primary school enrolment, secondary school enrolment and land area