Exports to China and economic growth in Latin America, unequal effects within the region

Julio Arteaga, Mónica Liseth Cardozo de Barrios, Marcia Diniz

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

Most Latin American countries have intensified their economic relationships with China since 1990, and even more as a result of the admission of China to the World Trade Organization (WTO). Therefore, this article has two purposes: (1) to explore if exports to China have a different effect on Latin American economic growth than the effect of worldwide exports and (2) to analyze whether exports to China have a different impact on economic growth between South America and a group of countries comprising Mexico and Central American and Caribbean countries since their sources of comparative advantages are diverse. An export-led growth model that focuses on the effects on economic growth via productivity is estimated using panel data techniques and information from 1990 to 2017. Results show that exports to China have a different effect than
worldwide exports on Latin American economic growth via productivity. Furthermore, this study provides a new contribution to the literature by showing that exports to China have a positive impact on South America but a negative impact on the group of Mexico, Central America, and the Caribbean for the period after China enters WTO. This result means that growth in exports to
China intensifies the primary exporting character of South American countries
Original languageEnglish
Pages (from-to)1-17
Number of pages17
JournalInternational Economics
Volume164
DOIs
Publication statusPublished - Dec 2020
Externally publishedYes

Bibliographical note

Funding Information:
We thank Edgar M. Luna, Jorge O. Moreno, Óscar A. Méndez, the editor, Holger Breinlich, and two anonymous reviewers for their useful contributions to improve this manuscript. We also thank Adrian Moral for assistance related to style and language. This study was supported by the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (Coordination of Higher Education for Personnel Improvement). All errors are our own.

Publisher Copyright:
© 2020 CEPII (Centre d'Etudes Prospectives et d'Informations Internationales), a center for research and expertise on the world economy

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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