What has happened to growth in Latin America

Growth in the first post-reform decade in Latin America has been disappointing, largely because of a severe slowdown after 1995 in the countries in South America. Per capita income grew at only .9% per year between 1995 and 1999 compared to 2.7% for 1950-80 and 1.5% for the nineties as a whole. What...

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Main Author: Morley, Samuel
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2001
Subjects:
Online Access:https://hdl.handle.net/10568/156771
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author Morley, Samuel
author_browse Morley, Samuel
author_facet Morley, Samuel
author_sort Morley, Samuel
collection Repository of Agricultural Research Outputs (CGSpace)
description Growth in the first post-reform decade in Latin America has been disappointing, largely because of a severe slowdown after 1995 in the countries in South America. Per capita income grew at only .9% per year between 1995 and 1999 compared to 2.7% for 1950-80 and 1.5% for the nineties as a whole. What has gone wrong? The paper finds that neither falling investment, volatile capital inflows nor the implementation of structural reforms is the problem. Indeed relative growth performance across countries is positively related to the amount of reform they adopted. Instead the problem seems to relate to a significant reduction in the growth rate of exports since 1997. Mexico, Costa Rica and the Dominican Republic did well, but every country in South America has suffered a reduction in exports with the exception of Colombia where they were constant. Partly that is because the countries that are the main markets for Latin exports are not growing as fast as they were, but South America is also losing market share in those countries. The basic assumption of the new reform growth model is that exports will be a significant engine of growth. It does not seem to be working out that way for South America. It is not clear what the cause of the export slowdown is, but no export-led growth strategy is going to work if it cannot produce an export growth rate higher than 2.3% per year.
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spelling CGSpace1567712025-11-06T06:25:40Z What has happened to growth in Latin America Morley, Samuel growth income economic situation exports Growth in the first post-reform decade in Latin America has been disappointing, largely because of a severe slowdown after 1995 in the countries in South America. Per capita income grew at only .9% per year between 1995 and 1999 compared to 2.7% for 1950-80 and 1.5% for the nineties as a whole. What has gone wrong? The paper finds that neither falling investment, volatile capital inflows nor the implementation of structural reforms is the problem. Indeed relative growth performance across countries is positively related to the amount of reform they adopted. Instead the problem seems to relate to a significant reduction in the growth rate of exports since 1997. Mexico, Costa Rica and the Dominican Republic did well, but every country in South America has suffered a reduction in exports with the exception of Colombia where they were constant. Partly that is because the countries that are the main markets for Latin exports are not growing as fast as they were, but South America is also losing market share in those countries. The basic assumption of the new reform growth model is that exports will be a significant engine of growth. It does not seem to be working out that way for South America. It is not clear what the cause of the export slowdown is, but no export-led growth strategy is going to work if it cannot produce an export growth rate higher than 2.3% per year. 2001 2024-10-24T12:45:25Z 2024-10-24T12:45:25Z Working Paper https://hdl.handle.net/10568/156771 en Open Access application/pdf International Food Policy Research Institute Morley, Samuel. 2001. What has happened to growth in Latin America. TMD Discussion Paper 67. https://hdl.handle.net/10568/156771
spellingShingle growth
income
economic situation
exports
Morley, Samuel
What has happened to growth in Latin America
title What has happened to growth in Latin America
title_full What has happened to growth in Latin America
title_fullStr What has happened to growth in Latin America
title_full_unstemmed What has happened to growth in Latin America
title_short What has happened to growth in Latin America
title_sort what has happened to growth in latin america
topic growth
income
economic situation
exports
url https://hdl.handle.net/10568/156771
work_keys_str_mv AT morleysamuel whathashappenedtogrowthinlatinamerica