China's and India's Challenge to Latin America : Opportunity or Threat?

China's and India's fast economic growth since 1990 is paralleled only by their growing presence in policy discussions throughout the Latin America and the Caribbean (LAC) region. The success of these Asian countries is looked upon with admiration, but there is also concern about the effects that growing Chinese and Indian exports may have on the manufacturing and service sectors throughout LAC. Blame for the private sector's poor performance in some LAC countries often falls on the growing presence of China, and to a lesser extent India, in world markets. The rest of this introduction is organized as follows: the next section summarizes the evidence on the positive aggregate effects of China's and India's growth in world trade markets, foreign direct investment (FDI) flows, and innovation activities on LAC economies, and is followed by a section presenting evidence on the effects of China's and India's growth within industries, concluding that negative effects are limited to certain manufacturing and service sectors, in particular in Mexico and to a lesser extent in Central America and the Caribbean. Next is a section that summarizes evidence of the effects of China's and India's growth on specialization patterns and factor adjustments, and actual and potential policy responses by LAC governments. The final section summarizes policy implications.

Bibliographic Details

Main Authors:	Lederman, Daniel, Olarreaga, Marcelo, Perry, Guillermo E.
Format:	Publication biblioteca
Language:	English
Published:	World Bank 2009
Subjects:	ACCUMULATION OF RESERVES, ADJUSTMENT COSTS, ANTIDUMPING, ANTIDUMPING CASES, ANTIDUMPING DUTIES, APPAREL, APPAREL INDUSTRIES, APPAREL INDUSTRY, ASSETS, BILATERAL AGREEMENTS, BILATERAL COOPERATION, BILATERAL TRADE, BUSINESS CYCLE, BUSINESS CYCLE SYNCHRONIZATION, BUSINESS CYCLES, CAPITAL FLOWS, CAPITAL MARKETS, CAPITAL OUTFLOWS, CAPITAL STOCK, CAPITAL STOCKS, CENTRAL BANK, COMMODITIES, COMMODITY PRICE, COMMODITY PRICES, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CONSTANT ELASTICITY OF SUBSTITUTION, CONSUMER PREFERENCES, CONSUMERS, COPYRIGHT CLEARANCE, COPYRIGHT CLEARANCE CENTER, CORPORATE GOVERNANCE, CORRELATION ANALYSIS, CORRELATION COEFFICIENT, CORRELATION OF BUSINESS CYCLES, COUNTRY DUMMIES, COUNTRY ECONOMY, DEMAND SHOCKS, DEPENDENT VARIABLE, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICIES, DOMESTIC MARKETS, DOMESTIC PRODUCERS, ECONOMETRIC MODEL, ECONOMIC COOPERATION, ECONOMIC GROWTH, ECONOMIC POLICIES, ECONOMIC POLICY, ECONOMIC RELATIONS, ECONOMIC RESEARCH, ECONOMIC SIZE, ECONOMICS, ECONOMICS RESEARCH, ELASTICITY, ELASTICITY OF SUBSTITUTION, EXPLANATORY VARIABLE, EXPORT GROWTH, EXPORT MARKET, EXPORT PRICES, EXPORT SPECIALIZATION, EXPORT SUPPLY, EXPORT VOLUME, EXPORTER, EXPORTERS, EXPORTS, EXPOSURE, EXTERNALITIES, FACTOR ENDOWMENTS, FACTORS OF PRODUCTION, FEDERAL RESERVE, FINANCIAL SECTOR, FISCAL POLICY, FOREIGN ASSET, FOREIGN ASSET HOLDINGS, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN RELATIONS, FREE TRADE, FREE TRADE AGREEMENT, FREE TRADE AREA, GDP, GDP PER CAPITA, GENERAL AGREEMENT ON TARIFFS, GENERAL EQUILIBRIUM, GEOGRAPHIC PROXIMITY, GLOBAL COMPETITION, GLOBAL ECONOMY, GLOBAL LIQUIDITY, GLOBAL MARKETPLACE, GLOBAL MARKETS, GLOBALIZATION, GRAVITY MODEL, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT PER CAPITA, HUMAN CAPITAL, IMPACT OF TRADE, IMPORT COMPETITION, IMPORT DATA, IMPORT DEMAND, IMPORT MARKETS, IMPORT PENETRATION, IMPORT PRICE, IMPORT PRICES, IMPORT TARIFFS, IMPORTS, INCOME LEVELS, INDUSTRIAL PRODUCTION, INDUSTRIAL SECTOR, INDUSTRY TRADE, INEQUALITY, INSTRUMENTAL VARIABLES, INTERMEDIATE GOODS, INTERNATIONAL ECONOMICS, INTERNATIONAL FINANCE, INTERNATIONAL INTEREST, INTERNATIONAL INTEREST RATES, INTERNATIONAL MARKETS, INTERNATIONAL STANDARD, INTERNATIONAL TRADE, INTERNATIONAL TRADE COMMISSION, INVESTMENT CLIMATE, INVESTMENT OPPORTUNITIES, INVESTOR PROTECTION, JOB CREATION, LABOR FORCE, LABOR MARKETS, LIQUIDITY, LOBBYING, MACROECONOMIC VULNERABILITY, MACROECONOMICS, MARKET SHARE, MARKET SHARES, MONOPOLISTIC COMPETITION, MULTINATIONAL ENTERPRISES, MULTINATIONAL FIRMS, NATURAL RESOURCE, NATURAL RESOURCES, NET EXPORTER, NET EXPORTS, OPEN ECONOMY, OUTPUT, PATENTS, POLITICAL ECONOMY, POSITIVE EXTERNALITIES, PREFERENTIAL ACCESS, PREFERENTIAL TARIFFS, PREFERENTIAL TRADE, PRICE INDEXES, PRIMARY COMMODITY, PRIVATE CAPITAL, PRIVATIZATION, PRODUCTION STRUCTURES, PRODUCTIVITY, PROTECTIONISM, PROTECTIONIST, PUBLIC DEFICITS, QUOTAS, RAPID GROWTH, REGIONAL TRADE, REGIONAL TRADE AGREEMENTS, REGRESSION ANALYSIS, RELATIVE PRICES, REMITTANCES, RESERVE BANK, SAFETY NETS, SHARE OF WORLD EXPORTS, SIDE EFFECTS, SLOWDOWN, SOCIAL DEVELOPMENT, SPECIALIZATION, SUGAR PRICES, SUPPLY CAPACITIES, SUPPLY CAPACITY, SUPPLY CONDITIONS, SUPPLY SHOCKS, SUPPLY SIDES, SUPPLY-SIDE, SURPLUSES, TELECOMMUNICATIONS, TERMS-OF-TRADE GAINS, TOTAL EXPORTS, TOTAL FACTOR PRODUCTIVITY, TOTAL IMPORT, TOURISM, TRADE BALANCE, TRADE CLASSIFICATION, TRADE COSTS, TRADE DATA, TRADE FLOWS, TRADE IN GOODS, TRADE IN SERVICES, TRADE INTEGRATION, TRADE LIBERALIZATION, TRADE POLICIES, TRADE RELATIONSHIPS, TRADE SHOCKS, TRADE STATISTICS, TRADEMARKS, TRADING PARTNERS, UNEMPLOYMENT, UNSKILLED LABOR, VALUE ADDED, WAGES, WEALTH, WORLD DEMAND, WORLD DEVELOPMENT INDICATORS, WORLD MARKETS, WORLD PRICE, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20090128002333 http://hdl.handle.net/10986/2591
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