02109cas a2200277 a 4500 AALejournalIMF021049 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513547886 1018-5941 BD-DhAAL BD-DhAAL Bakker, Bas. The Lack of Convergence of Latin-America Compared with CESEE : Is Low Investment to Blame? / Bas Bakker, Manuk Ghazanchyan, Alex Ho, Vibha Nanda. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (82 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In the last few decades there has been little convergence of income levels in Latin America with those in the United States, in sharp contrast with both emerging Asia and emerging Europe. This paper argues that lack of convergence was not the result of low investment. Latin America is poorer because of lower human capital levels and lower TFP-not because of a lower capital-output ratio. Cross-country differences of TFP in turn are associated with differences in human capital, governance and business climate indicators. We demonstrate that once levels of human capital and governance are taken into account, there is strong conditional cross-country convergence. Poor countries with high levels of human capital, governance or business climate indicators converge rapidly. Poor countries without those attributes do not. We show that low investment is the result of low TFP and thus GDP growth-not the cause. Mode of access: Internet Ghazanchyan, Manuk. Ho, Alex. Nanda, Vibha. IMF Working Papers; Working Paper ; No. 2020/098 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/098/001.2020.issue-098-en.xml IMF e-Library