Concentration of Income and Slow Growth in America Latina
Our hypothesis is: the weak growth of American Latina economies is a result of the low dynamism of investment, and it is associated to the profit performance in an economy in a process of structural change. The strategy of neoliberal policies applied for thirty years has fallen into its own trap: by favoring corporate profits and business classes, have neglected the growth of the domestic effective demand and social welfare. This hypothesis is supported by the Post-keynesian and Kalecki’s theory.
This paper uses a combination of methodologies designed for the analysis of time series: the cointegration methodology of Johansen (1988) determines the presence of at least one co-integrating vector, showing the existence of a long-term relationship between the variables and on the other hand, the methodology of vector autoregressive (VAR) analyzes short-term relations between them. The countries analyzed are Argentina, Brazil, Colombia, Chile and Mexico. This research has verified the relevance of the Post-Keynesian and Kalecki’s theory, and our hypothesis