Growth of Latin America Vs. Term Paper

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59-84). A lack of rule of law equates to lawlessness and high levels of violence and theft.

In aggregate the factors of investment, fertility, schooling, and socio-political openness to new venture create statistically significant differences in economic performance between the regions. What De Gregorio (et. al.) also found was Latin American nations are continually coming in and out of economic crises, which makes their banking system, money supply and balance-of-payments highly risky and difficult to invest in even when there is a growth opportunity.

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Latin America's greatest challenge will be in overcoming the tendency to continually cycle from one economic crisis to another......

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