New Economics Papers
on Central and South America
Issue of 2013‒10‒18
nine papers chosen by

  1. Social Spending, Taxes and Income Redistribution in Uruguay By Marisa Bucheli; Nora Lustig; Máximo Rossi; Florencia Amábile
  2. Regulation, renegotiation and capital structure : theory and evidence from Latin American transport concessions By Moore, Alexander; Straub, Stephane; Dethier, Jean-Jacques
  3. Institutional Voids or Entry Barriers? Business Groups, Innovation and Market Development in Emerging Economies By Fulvio Castellacci
  4. Accessing International Climate Change Related Finance in Latin America and the Caribbean By World Bank
  5. Agricultural Exports from Latin America and the Caribbean : Harnessing Trade to Feed the World and Promote Development By Nabil Chaherli; John Nash
  6. New Empirical Insights into the “Natural Trading Partner” Hypothesis for CARICOM Countries By Khadan, Jeetendra; Hosein, Roger
  7. From Noise to Signal : The Successful Turnaround of Poverty Measurement in Colombia By João Pedro Azevedo
  8. The Impact of Regional Trade Agreements on Chilean Fruit Exports By Linda Fulponi; Alejandra Engler
  9. Roads or Schools? Political Budget Cycles with different types of voters. By Lopez Uribe, Maria del Pilar

  1. By: Marisa Bucheli (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Nora Lustig (Department of Economics, Stone Center for Latin American Studies and CIPR, Tulane University); Máximo Rossi (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Florencia Amábile (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: How much redistribution does Uruguay accomplish through social spending and taxes? How progressive are revenue collection and social spending? A standard fiscal incidence analysis shows that Uruguay achieves a nontrivial reduction in inequality and poverty when all taxes and transfers are combined. In comparison with other five countries in Latin America, it ranks first (poverty reduction) and second (inequality reduction), and first in terms of poverty reduction effectiveness and third in terms of overall (including transfers in kind) inequality reduction effectiveness. Direct taxes are progressive and indirect taxes are regressive. Social spending on direct transfers, contributory pensions, education and health is quite progressive in absolute terms except for tertiary education, which is almost neutral in relative terms
    Keywords: poverty, inequality, Uruguay, social spending, taxes
    JEL: I3 H2 H5
    Date: 2012–09
  2. By: Moore, Alexander; Straub, Stephane; Dethier, Jean-Jacques
    Abstract: The paper examines the capital structure of regulated infrastructure firms. The authors develop a model showing that leverage, the ratio of liabilities to assets, is lower under high-powered regulation and that firms operating under high-powered regulation make proportionally larger reductions in leverage when the cost of debt increases. They test the predictions of the model using an original panel dataset of 124 transport concessions in Brazil, Chile, Colombia and Peru over 1992-2011, finding broad support for our predictions.
    Keywords: Debt Markets,Emerging Markets,Bankruptcy and Resolution of Financial Distress,Banks&Banking Reform,Economic Theory&Research
    Date: 2013–10–01
  3. By: Fulvio Castellacci (Department of International Economics, Norwegian Institute of International Affairs (NUPI), Norway)
    Keywords: Business groups, innovation, institutional voids, entry barrieris, market development, emerging economics, Latin America
    Date: 2013–10–09
  4. By: World Bank
    Keywords: Science and Technology Development - Science of Climate Change Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Finance and Financial Sector Development - Access to Finance Environmental Economics and Policies
    Date: 2013–06
  5. By: Nabil Chaherli; John Nash
    Keywords: Food and Beverage Industry International Economics and Trade - Free Trade Economic Theory and Research Transport Economics Policy and Planning Environmental Economics and Policies Industry Macroeconomics and Economic Growth Environment Transport
    Date: 2013–05
  6. By: Khadan, Jeetendra; Hosein, Roger
    Abstract: The central notion of the natural trading partner hypothesis is that a Free Trade Agreement (FTA) will be welfare enhancing for members if there is a strong level of bilateral trade complementarity among their trade structures. This paper presents an empirical examination of this issue with reference to a small developing trade bloc–the Caribbean Community (CARICOM) and its trading partners. The trade intensity index model is used to assess the determinants of intra-CARICOM and extra-CARICOM trade, placing focus on trade complementarity. The results showed that intra-CARICOM trade complementarity is low and concentrated in a few primary industries which can provide a possible explanation for the persistent low levels of intra-CARICOM trade. The findings also indicate that trade complementarity is generally low between CARICOM countries and their proposed FTA partners in the European Union (EU) and North America. The best natural trading partners for CARICOM countries are then identified based on a ranking of countries from 7 regions (CARICOM, the EU, North America, Asia, Central America, Latin America and Africa).
    Keywords: natural trading partner hypothesis, trade complementarity, trade intensity index model, CARICOM countries
    JEL: F13 F14 F15
    Date: 2013–10–08
  7. By: João Pedro Azevedo
    Keywords: Poverty Reduction - Rural Poverty Reduction Poverty Reduction - Achieving Shared Growth Macroeconomics and Economic Growth - Regional Economic Development Poverty Monitoring and Analysis Poverty Reduction - Poverty Reduction Strategies
    Date: 2013–05
  8. By: Linda Fulponi; Alejandra Engler
    Abstract: This report analyses the impact of Chile’s free trade agreements (FTAs) on fresh fruit exports. It finds that the FTAs have been important instruments for providing increased market access for Chilean products based on both an econometric analysis and structured surveys of exporters. While the impacts on profits were not considered to very significant according to exporters, the agreements are considered necessary to maintain a level playing field with Chile’s competitors. Both SAG, Chile’s plant and animal health authority, and Pro-Chile, Chile’s export promotion agency, were viewed as essential to promoting Chile’s reputation as an exporter of quality products. Interviews with trade associations covering a wide range of export products, found that while the FTAs provided entry points into markets, actual market access did not always benefit all sectors equally.
    Keywords: free trade agreements, agricultural trade impacts, fruit exports, exporter surveys and tariff concessions
    Date: 2013–10–08
  9. By: Lopez Uribe, Maria del Pilar
    Abstract: Using a new Colombian data set (1830-2000), we analyze how changes in the electoral legislation with regard to the characteristics of voters (in terms of education and income levels) has affected fiscal policy in electoral times. In line with economic theory, we show that after the law was reformed in 1936 the composition of the expenditure shifted towards social spending (like education, health, and welfare benefits) but there was decreased spending on infrastructure and investment projects (like roads). Consistent with the literature, we also find: 1.The timing and the size of the political budget cycles changed after 1936 and 2.After 1936 there was a shift in the funding mechanisms from indirect tax revenues to more debt.
    Keywords: Political Budget Cycles, Expenditure composition, Revenue composition, Elections, Colombia
    JEL: D72 D78 E62 H61
    Date: 2013

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