9. Latin America 2000-2007: The Role of Investment, Industry and Foreign Trade in economic development. Euro-American Association of Economic Development Studies

     Economic development in Latin America has experienced a positive evolution in the period 2000-2007, althought it could have been higher in case of more industrialization. The low levels of industrial real Value-Added per capita in comparison with OECD countries explains, at a great degree, the lower levels of real income per capita in Latin American countries.

    The following graph shows the relationships between increase of real GDP per capita in the period 2000-2007 and the level of industrial development at the beginning of that period. Of course the increase in industrialización during the period has also a positive impact on the development of services and other sectors, and thus on real GDP per capita.
                     Increase of real GDP per capita and industrialización in Latin America
                         Source: Elaboration by the Euro-American Association from World Bank indicators

 The important role of industry, together with human capital, social capital, foreign trade and other factors is well explained in the figures presented in the article by Guisan(2009), free on line at Volume 9-1 of the journal AEID
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