ECONOMIC GROWTH REGIMES: EVIDENCE FROM LATIN AMERICA

This paper studies the effect of economic instability, income inequality and open-ness in the transition to different growth regimes for 18 Latin American countries during the 1980-2014 period. The study is carried out determining three differ-ent levels: low, middle and high economic growth. The countries are categorised according to the method of k-median clustering. We use panel data estimation applying random effects model and ordered logit. The results indicate that instabil-ity and inequality negatively affect the economic performance of the region, while openness is not a significant factor in explaining economic growth.