The Economics and Finance Letters 2312-6310 2312-430X 10.18488/journal.29.2020.72.218.235 The Economics and Finance Letters Human Capital and Economic Growth in Latin America: A Cointegration and Causality Analysis The Economics and Finance Letters The Economics and Finance Letters 12-2020 2020 12-2020 12-2020 7 2 218 235 20 Jul 2020 16 Sep 2020 This paper investigates the causal relationship between government spending on education and economic growth in eight selected Latin American countries by using panel unit root test and panel cointegration analysis for the period 2000-2014. A three-variable model was formulated with trade volume as the second independent variable. The findings conclude that government spending on education and economic growth in the selected countries is positively and significantly associated, in the long and short-run, with evidence of a bidirectional Granger causal relationship between the dependent and the variable of interest, a unidirectional Granger causal relationship between trade volume and economic growth. The implication of our results shows that government secondary school spending on education has a positive impact on the selected countries, and our analysis can be replicated with other countries.