CAPITAL ACCUMULATION IN LATIN AMERICA: A SIX COUNTRY COMPARISON FOR 1950–89

Abstract

This article provides estimates of gross and net fixed capital stock for six Latin American countries: Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela for 1950–89. The capital stocks have been generated using the perpetual inventory method. To use the perpetual inventory method, historical time series of gross fixed investment, broken down into machinery and equipment, residential and non‐residential structures were estimated. The diskette accompanying the article contains a detailed description of the sources and series used and for each country, long‐term series (1900–89) of GDP at constant 1980 national prices, GDP at constant 1980 international dollars, population, GDP per capita and gross total and disaggregated investment in national currencies and as a percentage of GDP. The diskette also contains a complete set of net and gross capital stock estimates, average ages, average service life and capital‐output ratios for 1950–89 each in national currencies and international dollars.The findings show rising capital‐output ratios in most countries, except for Chile, where it remains more or less constant, and Colombia, where the ratio falls.