scholarly journals Innovation and Economic Growth in Emerging Latin American Countries: The Case of Mexico, Brazil and Chile

2015 ◽  
Vol 2 (4) ◽  
pp. 17-27
Author(s):  
Edgar J. Saucedo A ◽  
Marisol Borges Q
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Innovation Process ◽  
Developed Countries ◽  
Emerging Countries ◽  
Complex Process ◽  
Government Education ◽  
The Impact ◽  
Latin American Countries ◽  
Research Centres

Over recent years, several theoretical and empirical research projects (from developed countries) have studiedinnovation as a complex process involving participation, interaction and interrelationship of actors (organizations, individuals, businesses) and institutions (government, education, research centres) as elements of a collective system that contribute and influence the innovation process. In addition, such research shows how innovation has impacted positively on the economic growth of nations.In order to understand the functioning of the National Innovation Systems in emerging countries (Mexico, Brazil and Chile), we performed a critical analysis of the approach, examining their application limitations and recognising the characteristics and interests of Latin American countries. Furthermore, we analysed the impact of innovation on economic growth in these countries. The aim of this paper is to analyse whether the differences in economic growth among Mexico, Chile and Brazil, are explained by gaps in levels of innovation.

scholarly journals Does FDI promote Economic Growth and Development? Evidence from Latin America and Africa

2015 ◽  
Vol 44 (1) ◽  
pp. 34-52
Author(s):  
Mohammed Seid Hussen
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Latin American ◽  
Positive Impact ◽  
Absorption Capacity ◽  
Transport Infrastructure ◽  
Panel Regression ◽  
Economic Policies ◽  
The Impact ◽  
Latin American Countries

This paper is an attempt to analyse and empirically estimate the impact of FDI on economic growth and human development of Africa and Latin American countries for the period 1985–2011. To this end we develop two equations: growth and human development. Our findings, based on fixed effect panel regression, thus, suggest that FDI does not have a positive impact on economic growth but it has significant positive impact on human development. We conclude that for FDI to be a noteworthy provider to economic growth, it is important to increase absorption capacity by improving the level of democracy, increasing and improving transport infrastructure and following appropriate economic policies. Our results are found to be robust across approach, model specifications and statistical test.

scholarly journals Economic Ideas and North-South Preferential Trade Agreements in the Americas

2019 ◽  
Vol 2 (4) ◽  
pp. 34
Author(s):  
Nicolás Pose
Keyword(s):  
Latin American ◽  
Trade Agreements ◽  
Developed Countries ◽  
Preferential Trade Agreements ◽  
Costs And Benefits ◽  
Preferential Trade ◽  
Latin American Region ◽  
The Impact ◽  
Latin American Countries ◽  
Gain Access

North-South Preferential Trade Agreements (PTAs) are an intensified version of the Uruguay round’s bargain, in which developing countries gain access to developed countries’ markets, expecting increase in inflows of foreign direct investment, but see their ‘policy space’ reduced (Shadlen, 2005). Focusing on United States’ PTAs in the Latin American region, this article seeks to answer why some Latin American countries found this bargain attractive while others did not. I argue that modern PTAs generate uncertainty over their costs and benefits, because there are not standardized tools to estimate the impact of the ‘trade-related’ provisions they include. As a result, policymakers turn to their general ideas about economic development, which assign different meanings to them, producing differing decisions. Empirically, it is shown that the argument complements previous explanations based on structural and societal variables.

scholarly journals Perfect Capital Mobility, Taxation, Money Illusion, and Devaluations

1995 ◽  
Vol 34 (4III) ◽  
pp. 1013-1022
Author(s):  
Syed Zahid Ali
Keyword(s):  
Latin American ◽  
Trade Balance ◽  
Capital Mobility ◽  
Developed Countries ◽  
Money Illusion ◽  
Long Run ◽  
Long Time ◽  
The Impact ◽  
Latin American Countries ◽  
Theoretical Results

Are devaluations contractionary? This question has been with us for a long time. The conventional Keynesian economist holds the view that if devaluation is demandexpansionary, then both output and balance-of-payments will improve with devaluation. Experience, however, shows contrary outcomes. For example, Sheehy (1986), who has covered 16 Latin American countries, concluded that devaluation was highly contractionary in these countries. Edwards (1986), on the other hand, has covered 12 less developed countries (LDCs) and found that devaluations are contractionary in the impact period, while in the long-run they all become neutral. Hamarious (1989) has used the data for the periods 1953-73 and 1975-84 and has covered twenty-seven countries and six devaluation episodes to study the effects of devaluations upon prices and the trade balance. He found that in over 80 percent of the cases, devaluation causes a net improvement in the trade balance both in the impact period and in the middle period. The study concluded that the effects of devaluation upon the trade balance last for two to three years. Such results seriously challenge the theoretical results derived by the conventional economist.

scholarly journals Education, Cooperation and Development: The Latin American Situation at the Beginning of the XXI Century

2004 ◽  
Vol 12 ◽  
pp. 15
Author(s):  
Isabel Neira Gómez ◽  
Marta Portela Maseda
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Latin American ◽  
International Organizations ◽  
International Aid ◽  
Developed Countries ◽  
Educational Needs ◽  
Education Policies ◽  
The Developed Countries ◽  
Latin American Countries

In this article, we analyze the basic educational needs of the countries of Latin America, the education policies that are evolving within the region, and the policies that are proposed by the developed countries to meet these needs in the future. Educational aid for development will be the focus of this study. The first section contains an analysis of the basic needs in these countries, complemented by an analysis of the policies proposed by international organizations to resolve those needs. Finally, we discuss the influence that education exerts on economic growth and the role placed by international aid to education in the process of development of Latin American countries.

scholarly journals FDI and Economic Growth — Does the Quality of Banking Development Matter?

2014 ◽  
Vol 15 (3) ◽  
pp. 287 ◽  
Author(s):  
Nor Hakimah Haji Mohd ◽  
Soo-Wah Low ◽  
Abu Hassan Shaari Md Nor ◽  
Noor A. Ghazali
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
Emerging Countries ◽  
Positive Role ◽  
Growth Effects ◽  
Net Interest Margin ◽  
The Impact ◽  
Banking Development

This study examines the role of banking development quality in the FDI-growth nexus from 1998 to 2009. Banking development quality is measured using two standardized intermediation  cost indicators and an index of banking development quality that is constructed based on the following indicators: overhead costs to total assets and net interest margin. The results for developed countries show that, on its own, FDI is negatively related to economic growth. However, when FDI is interacted with a banking development quality index, the quality of banking development is found to play a positive role in influencing the effects of FDI on economic growth. This suggests that the quality of banking development serves as an absorptive capacity that allows developed countries to benefit from the positive growth effects of FDI. On the contrary, for emerging countries, the findings indicate that banking development quality plays no role in influencing the impact of FDI on economic growth. This implies that the quality of banking development in emerging countries has yet to reach a level that allows it to importantly influence the growth effects of FDI.       

Emerging Countries: New Centres of Power or Colossi with Feet of Clay?

2015 ◽  
pp. 108-117
Author(s):  
V. Krasil’shchikov
Keyword(s):  
Latin American ◽  
Emerging Countries ◽  
High Tech ◽  
Middle Income ◽  
Middle Classes ◽  
Development Models ◽  
The North ◽  
Starting Point ◽  
The Impact ◽  
Latin American Countries

The paper is based upon a review of three new books devoted to the big emerging countries in Latin America and Asia. One of these books was written by the Russian scholar Lev Klochkovskii. The authorship of two other books belongs to Pierre Salama, a well-known French specialist in developing countries. The starting point for consideration of the mentioned works is the fact of convergence between the North and the South. This convergence involves quantitative economic indicators as well as qualitative aspects of development: the rise of innovations and R&D centres, enterprises outputting high-tech goods, etc. All these and some other trends require revision of old concepts of “centre” and “periphery” in the world system. However, the countries under consideration have entered the period of slowdown, and risk to fall into a middle income trap. It means that their development models have been exhausting and need to be profoundly changed. In the case of Latin American countries, the difficulties arisen recently are aggravated by the impact of China. The manufacturing industries in Brazil and Mexico loose competiveness under pressure of goods imported from China. It brings about a relative de-industrialisation of Latin American economies. At the same time, the recent development in China becomes increasingly resembling to the Brazilian situation of the 1970s when the economic growth was mostly advantageous for the upper, upper middle and, partly, middle classes. It led to the deepening of social differentiation and, thereby, restrained the internal market. This trend can be interpreted as “Latin Americanisation” of China. Can the big emerging countries change trajectories of their development? If not, they will appear as the colossi with feet of clay rather than the real centres of economic power.

Research Note: Tourism and Economic Growth in Latin American Countries – Further Empirical Evidence

2011 ◽  
Vol 17 (6) ◽  
pp. 1365-1373 ◽  
Author(s):  
Bichaka Fayissa ◽  
Christian Nsiah ◽  
Bedassa Tadesse
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Empirical Models ◽  
Tourism Industry ◽  
Neoclassical Growth Model ◽  
Short Run ◽  
Per Capita ◽  
The Impact ◽  
Latin American Countries ◽  
Neoclassical Growth

Using panel data that span from 1990 to 2005, the authors investigate the impact of tourism on the economic growth of 18 heterogeneous Latin American countries within the framework of the conventional neoclassical growth model. Results from the empirical models show that revenues from the tourism industry contribute positively to both the current level and the growth rate of the per capita GDP of the countries in the region, as do investments in physical and human capital. The findings imply that Latin American economies may enhance their economic growth in the short run by strengthening their tourism industries strategically, while not neglecting the traditional sources of economic growth.

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

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