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on Central and South America |
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Issue of 2010‒09‒25
two papers chosen by |
| By: | Paola Andrea Barrientos Quiroga (School of Economics and Management, Aarhus University, Denmark) |
| Abstract: | Literature on convergence among Latin American countries is still scarce compared to other regions. Moreover, almost none of the research connects convergence to the economic history of Latin America and the usual finding is one speed of convergence. In this paper I analyze 32 countries and 108 years, more observations than any other study. This long span of data allows me to use economic history to explain, analyze, validate, and understand the results of convergence patterns in the region. I find more than one speed of convergence (clubs) related to the known historical background, country characteristics, and external shocks in the region. I study three important phases, following Thorp (1998): from 1900 to 1930, the exporting phase, from 1931 to 1974, the industrialization phase, and from 1975 to 2007, the globalization phase. During the last two phases, I find strong evidence of convergence among those countries that succeeded in industrializing and/or building good institutions. The reason is that technology dissusion and capital accumulation is easier when these 2 phenomena occur. |
| Keywords: | Latin America, economic history, convergence, growth |
| JEL: | N0 N16 O0 O40 O47 |
| Date: | 2010–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2010-15&r=lam |
| By: | Carlos Bozzoli; Climent Quintana-Domeque |
| Abstract: | Argentina hit world news headlines in 2002 due to the largest debt-default in history and a sudden economic collapse reminiscent of economic statistics from the Great Depression. In this article, we focus on other consequences of the crisis that are not so obvious, but that may linger for decades on. Combining macroeconomic indicators with the Argentine national registry of live births, approximately 1.9 million live births occurring between 2001 and 2003, we show that the crisis led to an average birth weight loss of 30 grams. Our estimate is robust to different identification strategies. This deterioration in birth weight occurred in just about 6 months, and represents one sixth of the difference in average birth weight between American and Pakistani babies. We also find that the crisis affected particularly the weight of babies born from low-socioeconomic status mothers. In an attempt to estimate the long-lasting economic cost of the crisis, we simulate the average loss of future individual earnings due to the reduction in average birth weight: about 500 US dollars per live birth in present value. |
| Keywords: | Argentina, birth weight, economic crisis |
| JEL: | I1 J1 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1054&r=lam |