Structural Problems of Faltering Economic Development in Middle Income Latin American Countries

DOI HANDLE Web Site Open Access

Bibliographic Information

Other Title
  • ラテンアメリカ中所得国経済の発展と停滞における構造問題
  • ラテンアメリカ チュウ ショトクコク ケイザイ ノ ハッテン ト テイタイ ニ オケル コウゾウ モンダイ

Search this article

Abstract

In this study, we discuss the structural problems of the faltering economic development in middle income Latin American countries (LACs) in the twenty-first century. Following the neo-structuralist’s discussion, we conceptualize the region’s peripheral features that harm economic development as primary commodity dependence, low level of technological progress, and poor formation of global value chains (GVCs). Based on this concept of peripherality, we categorize the current globalization in LACs into two types. The first type is characterized by a low level of commodity dependence and high level of GVC formation, but a low level of technological progress and weak social policies, as typically seen in Mexico. The second type is characterized by a high level of commodity dependence, low level of GVC integration, and low level of technological progress but active social policies, as typically seen in South American countries such as Brazil and Chile. However, we find that labor productivity gaps vis-à-vis the United States of America have been stable or widened in the second type of globalization as well as the first type, which has succeeded in export-oriented industrialization based on GVC integration during the 2000s. Therefore, we argue that both types of countries have structural mechanisms such as specialization in low value-added tasks and boom and bust cycles, which prevent sustainable economic development in those countries; thus, it is essential to improve their quality of international insertion through technological progress.

Journal

  • Latin America Ronshu

    Latin America Ronshu 51 (0), 33-53, 2017

    Japan Society of Social Science on Latin America

Related Projects

See more

Details

Report a problem

Back to top