scholarly journals Fiscal Adjustment in Latin America and the Caribbean: Short-Run Pain, Long-Run Gain?

2018 ◽  
Author(s):  
Carlos A. Vegh ◽  
Guillermo Vuletin ◽  
Daniel Riera-Crichton ◽  
Diego Friedheim ◽  
Luis Morano ◽  
...  
Keyword(s):  
Latin America ◽  
Fiscal Adjustment ◽  
Long Run ◽  
Short Run ◽  
The Caribbean

The U. S. Dollarization Approach to Regional Currency Consolidation: Second-Best in the Short Run, Doomed in the Long Run

2011 ◽  
Vol 30 (119) ◽  
Author(s):  
George M. Von Furstenberg ◽  
Alexander Volbert
Keyword(s):  
Latin America ◽  
Financial Services ◽  
Free Movement ◽  
Monetary Unions ◽  
International Currency ◽  
Second Best ◽  
Long Run ◽  
Short Run ◽  
Free Movement Of Capital

Free movement of capital and trade in financial services are driving regional currency consolidation. We compare the relative merits of adopting an international currency unilaterally or multilaterally. While EMU is the exemplar of the multilateral approach characterized by assured seignior age sharing and co-management of the joint monetary asset, unilateral monetary unions are represented by the proposed formal dollarization of some countries in Latin America. This paper finds that while such dollarization could be useful for the period ahead, it carries the seeds of its own destruction because peripheral countries that lose their currency need not support this one-sided arrangement indefinitely

Spotlight: 21st Century Skills in Latin America and the Caribbean

2021 ◽  
Author(s):  
Christopher Petrie ◽  
Clara García-Millán ◽  
María Mercedes Mateo-Berganza Díaz
Keyword(s):  
Latin America ◽  
21St Century ◽  
21St Century Skills ◽  
Economic Conditions ◽  
Development Bank ◽  
Learning Context ◽  
Long Run ◽  
The World ◽  
The Caribbean ◽  
Insight Into

There is a wealth of conversation around the world today on the future of the workplace and the skills required for children to thrive in that future. Without certain core abilities, even extreme knowledge or job-specific skills will not be worth much in the long run. To address these issues, the Inter-American Development Bank (IDB) and HundrED conducted this Spotlight project with the goal of identifying and researching leading innovations that focus on 21st Century Skills in Latin America and the Caribbean. The Spotlight program was supported by J.P. Morgan. The purpose of this project is to shine a spotlight, and make globally visible, leading education innovations from Latin America and the Caribbean doing exceptional work on developing 21st Century Skills for all students, teachers, and leaders in schools today. The main aims of this Spotlight are to: Discover the leading innovations cultivating 21st century skills in students globally; understand how schools or organizations can implement these innovations; gain insight into any required social or economic conditions for these innovations to be effectively introduced into a learning context; celebrate and broadcast these innovations to help them spread to new countries. All the findings of the Spotlight in 21st Century Skills are included in this report.

scholarly journals A Dynamic Analysis of the Impact of Fiscal Adjustment on Economic Growth: Evidence From Pakistan

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110271
Author(s):  
Ibrar Hussain ◽  
Jawad Hussain ◽  
Arshad Ali ◽  
Shabir Ahmad
Keyword(s):  
Economic Growth ◽  
Causality Test ◽  
Distributed Lag ◽  
Fiscal Adjustment ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Empirical Calibration ◽  
Short Run ◽  
S Model ◽  
The Impact

This study claims to be the first in assessing the short-run and long-run impacts of both the size and composition of fiscal adjustment on the growth in Pakistan. Empirical calibration has been made on Mankiw et al.’s model, while the Autoregressive Distributed Lag (ARDL) techniques of Pesaran et al. have been employed to carry out the estimation. To cure the problem of degenerate cases, the ARDL techniques have been augmented with the model of Sam et al. The analysis supports the hypothesis of “expansionary fiscal contraction” in the long run. The analysis reveals that the spending-based adjustment enhances the economic growth, whereas the tax-based adjustment would reduce the growth in the long run in the case of Pakistan. The Granger causality test indicates that the fiscal adjustments have been weakly exogenous, thereby allowing feedback effect from the economic growth toward the fiscal adjustment. Thus, the objective of sustained economic growth can be achieved through the spending-based consolidation measures.

scholarly journals Tax Buoyancy in the Caribbean: Evidence from Heterogenous Panel Cointegration Models

2019 ◽  
Vol 11 (4) ◽  
pp. 36
Author(s):  
Jeetendra Khadan
Keyword(s):  
Global Financial Crisis ◽  
Panel Cointegration ◽  
Property Taxes ◽  
Pooled Mean Group ◽  
Panel Regressions ◽  
Long Run ◽  
Indirect Taxes ◽  
Short Run ◽  
The Mean ◽  
The Caribbean

This paper provides long and short run tax buoyancy estimates for a group of 12 Caribbean countries over the period 1991-2017. By using various panel regressions estimated by the Mean Group and Pooled Mean Group estimators, this paper finds that the long and short run tax buoyancy estimates are statistically greater than one. However, the results vary by tax categories: with respect to indirect taxes—which accounts for almost 65 percent of total tax revenues—the buoyancy of the long run coefficient significantly less than one (0.35), while for direct taxes it is significantly higher than one (1.33). It was also found that long run tax buoyancy was lower in the post global financial crisis period. With respect to short-run buoyancy, corporate taxes and trade taxes are the most buoyant in the short-run while property taxes were found to be statistically insignificant. For taxes on goods on services, the single most important tax for most countries, both long and short run buoyancy is not significantly different from one.

scholarly journals China’s Rebalancing

2020 ◽  
Vol 20 (239) ◽  
Author(s):  
Nitya Aasaavari ◽  
Fabio Di Vittorio ◽  
Ana Lariau ◽  
Yuebo Li ◽  
Rui Mano ◽  
...  
Keyword(s):  
Latin America ◽  
Growth Potential ◽  
Trade Barriers ◽  
Positive Outcomes ◽  
Export Markets ◽  
Long Run ◽  
The World ◽  
Large Growth ◽  
The Caribbean ◽  
Positive Effect

Asia and Latin America and the Caribbean (LAC), two regions with large growth potential, have become increasingly connected over the last 20 years. China has emerged not only as a top trading partner, but also as an important competitor of LAC exports. China’s retreat from certain markets, due to the ongoing rebalancing process, could open new opportunities for LAC exporters but also entail some challenges. Our results show that China’s rebalancing will have an overall positive effect on LAC’s GDP and exports in the long run, but this effect is small and uneven across countries, leading to winners and losers. We also provide evidence that other countries, such as India, are currently trying to fill the gap left by China and could undermine LAC’s competitive advantage in some export markets. In this context, reduction of trade barriers and further integration within the region and/or with the rest of the world would lead to unequivocally positive outcomes for all LAC countries. The COVID-19 shock might exacerbate the effects identified in our analysis.

scholarly journals Sectoral Productivity Growth, COVID-19 Shocks, and Infrastructure

2021 ◽  
Author(s):  
Hildegart Ahumada ◽  
Eduardo A. Cavallo ◽  
Santos Espina-Mairal ◽  
Fernando Navajas
Keyword(s):  
Latin America ◽  
Labor Productivity ◽  
Historical Data ◽  
Productivity Shocks ◽  
Productivity Losses ◽  
Long Run ◽  
Sectoral Productivity ◽  
The Caribbean ◽  
Panel Vector Autoregression ◽  
Productivity Gains

This paper examines sectoral productivity shocks of the COVID-19 pandemic, their aggregate impact, and the possible compensatory effects of improving productivity in infrastructure-related sectors. We employ the KLEMS annual dataset for a group of OECD and Latin America and the Caribbean countries, complemented with high-frequency data for 2020. First, we estimate a panel vector autoregression of growth rates in sector level labor productivity to specify the nature and size of sectoral shocks using the historical data. We then run impulse-response simulations of one standard deviation shocks in the sectors that were most affected by COVID 19. We estimate that the pandemic cut economy-wide labor productivity by 4.9 percent in Latin America, and by 3.5 percent for the entire sample. Finally, by modeling the long-run relationship between productivity shocks in the sectors most affected by COVID 19, we find that large productivity improvements in infrastructure--equivalent to at least three times the historical rates of productivity gains--may be needed to fully compensate for the negative productivity losses traceable to COVID 19.

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