scholarly journals The Use of Decomposition Methods to Understand the Economic Growth Gap between Latin America and East Asia

2021 ◽  
Vol 13 (12) ◽  
pp. 6674
Author(s):  
Beatriz Barrado ◽  
Gregorio Gimenez ◽  
Jaime Sanaú
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
East Asia ◽  
Physical Capital ◽  
Decomposition Methods ◽  
Estimation Methods ◽  
Relative Contribution ◽  
The Common ◽  
Growth Divergence ◽  
New Perspective

Understanding how growth factors contribute to explaining the large differences in growth rates across countries remains an important research agenda. The common approach to exploring this issue is based on the use of multiple linear regression analyses. This work contributes to growth literature by applying a new perspective based on the use of variance decomposition procedures: Shapley–Owen–Shorrocks and Oaxaca–Blinder. These methodologies have four main advantages with respect to traditional methodologies: they make possible the quantification of the relative contribution of each factor to economic growth, they allow us to estimate the efficiency in the use of the endowments of each factor, they can be used with any functional form and they can be used with estimation methods that are robust regarding endogeneity issues. We illustrate these advantages by analyzing the causes of the economic growth gap between Latin America and East Asia over the period 1980–2014. We find that the economic growth divergence between the two regions can be primarily explained by the differences in institutions and physical capital. In addition, the results indicate that the higher East Asian performance is not only due to its higher levels of endowments in these factors, but also to the higher efficiency in its use. We connect our results with the 2030 Agenda for Sustainable Development.

THE IMPACT OF TRADE OPENNESS IN LATIN AMERICA ON ECONOMIC GROWTH

2010 ◽  
Vol 1 (2) ◽  
pp. 150
Author(s):  
Fanny Wigeborn
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Trade Openness ◽  
Common View ◽  
Single Measure ◽  
Explanatory Variables ◽  
Before And After ◽  
Goods Market ◽  
The Common ◽  
The Impact

This paper investigates empirically the notion that enhanced levels of foreign trade as a result of the deregulation in international goods market would have spurred economic development and demonstrates that it is not obvious. We shed light on how this relationship applies to the special case of Latin America before and after “La Apertura”, the trade liberalization that took place in the late 80s and early 90s. Results show that openness solely is not a determinant of economic growth for the observed countries which stand in contrast to the general findings of existing literature on the topic. Using a single measure of trade openness togetherwith other explanatory variables, this paper fail to confirm the common view that openness is associated with growth.

scholarly journals The Currency of Knowledge: Education and economic growth in Latin America

2011 ◽  
Vol 4 (2) ◽  
pp. 1-15
Author(s):  
Andrew Thomas Bosz ◽  
Andrew Anthony Rufatt
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Latin America ◽  
East Asia ◽  
Brain Drain ◽  
Capital Accumulation ◽  
Labour Force ◽  
Developed Countries ◽  
Economic Prosperity ◽  
Level Of Education

In the early 1960s, Latin America was on the brink of significant economic growth, withschool attainment and income levels well ahead of East Asia. However, by 2000, despitegreater financial and political efforts to develop their education system to the standard offully developed countries, Latin America had already been well surpassed by East Asia. Byconsidering the influence of education and human capital accumulation, this paperendeavours to rationalise the disparities between the economic failures of Latin America bycomparison to the economic prosperity of East Asia. Internationally standardised cognitivetesting consistently shows Latin America below East Asia, indicating a greater quality ofeducation in East Asia. Moreover, Latin America appears to experience some degree ofdifficulty in retaining its human capital due to ‘brain drain’. As such, whilst the LatinAmerican labour force continues to grow, the average level of education is deteriorating,which in turn adversely affects economic prosperity.

scholarly journals Indigenous people, socio-environmental conflict and post-development in Latin America

2015 ◽  
Vol 18 (2) ◽  
pp. 23-40 ◽  
Author(s):  
Fernando de la Cuadra
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Social Development ◽  
Indigenous People ◽  
Indigenous Peoples ◽  
Indigenous Communities ◽  
Environmental Conflict ◽  
Everyday Practices ◽  
Man And Nature ◽  
New Perspective

The aims of this article is to reflect on the contradictions between a conception of development that is anchored in the idea of progress, industrialization and economic growth and worldviews of indigenous peoples, for whom the existing symbiotic bond between man and nature necessarily involves intangibility and irreducibility of natural resources as a source of economic and social development. For this reason, it is argued that a proper view of development must include an epistemic shift in which the ideas and knowledge of indigenous communities are built to radically alter society/nature and highly predatory logic environment relationship and life human that comes currently prevail. This new perspective implies a change in the discourse and everyday practices of "knowing" and "doing" in what some authors have referred to as post-development.

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