Analysis of Factors that Affect the Economic Growth in Developing Countries: A Case Study of Latin America

This study investigates the effects of various factors on economic growth in Latin America. We use Gross Domestic Product (GDP) to measure the performance of economic growth as it is one of the most important determinants of a country’s economic growth. We analyze the effects of five factors: export, import, foreign direct investment, educational investment, and the rate of inflation on the economy of four countries in Latin America: Ecuador, Peru, Paraguay, and Chile. Data is collected from 1990 to 2020, and a regression model is used for analysis. After analyzing the coefficients in the model, we get the results. The results show that export, import, and education have a significantly positive influence on GDP in most of the countries in Latin America, but foreign direct investment has a significantly negative influence mostly. The relationship between inflation and GDP is complex, as it is positive in some countries and negative in others.