Determinantes del crecimiento económico y convergencia en Centroamérica: Evidencia de modelos dinámicos con datos panel

In this paper we study the process of economic growth and convergence in Central America over the period 1960-2000. We specify a dynamic panel data model with fixed effects and evaluate the impact of the factors typically considered in the empirical growth literature, including human capital and socio-political factors. We also characterize the process of convergence and its magnitude. The results of this study suggest that investment in physical capital is the key determinant of growth in the region. Also, we find that the growth process in Central America is consistent with conditional convergence and shows a negative long run trend.