nep-lam New Economics Papers
on Central and South America
Issue of 2014‒11‒07
seven papers chosen by

  1. An Examination of the Convergence in the Output of South American Countries: The Influence of the Region's Integration Projects By Andrea Bonilla
  2. Foreign Direct Investment in Latin America and the Caribbean 2013 By NU. CEPAL. División de Desarrollo Productivo y Empresarial
  3. Financial literacy in Colombia seen through the lens of the interest rate bias By Mantilla, Cesar
  4. Local poverty reduction in Chile and Mexico: The role of food manufacturing growth By Isidro Soloaga; Chiara Cazzuffi; Mariana Pereira
  5. The Impact of Displacement on Child Health: Evidence from Colombia's DHS 2010 By Nina Wald
  6. Social security schemes and labor supply in the formal and informal sectors By Rodrigo Ceni
  7. The agrarian reform experiment in Chile: History, impact, and implications: By Valdés, Alberto; Foster, William E.

  1. By: Andrea Bonilla (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I (UCBL))
    Abstract: Since 2000, South American economies have undertaken several regional projects to eliminate socioeconomic inequalities and improve citizens' living standards. This study evaluates the convergence in real GDP per-capita, as a suitable proxy measure, of 10 Unasur members, namely Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Peru, Uruguay, Paraguay, and Venezuela, for the period 1951-2011. By relying on cointegration techniques and applying Bernard and Durlauf's (1995) stochastic definitions of convergence and common trends, the presented evidence supports the existence of common long-run trends driving output in South America, meaning that the region is involved in a dynamic process of convergence in living standards.
    Keywords: Cointegration; Convergence; Economic integration; South America; Unasur
    Date: 2014
  2. By: NU. CEPAL. División de Desarrollo Productivo y Empresarial
    Date: 2014–07
  3. By: Mantilla, Cesar
    Keywords: household credits, financial education, debt literacy
    JEL: D03 D14
    Date: 2014
  4. By: Isidro Soloaga (Department of Economics, Universidad Iberoamericana, Mexico City. Mexico); Chiara Cazzuffi; Mariana Pereira
    Abstract: This paper analyses the relationship between local poverty and food manufacture growth in Chile and Mexico using propensity score matching, differences in differences and spatial econometrics methods. We focus on food manufacture as a sector with a number of characteristics that make it potentially pro-poor, and whose incentives for spatial distribution may either strengthen or dampen its poverty reduction potential. The overall results indicate that i) geographically, food manufacture locates in relatively poor areas, but not in the poorest; ii) food manufacture tends to locate in municipalities with more availability of labor and raw materials and with better infrastructure; iii) controlling for other factors, food manufacture growth contributes to local poverty reduction both in terms of magnitude and speed.
    Date: 2014
  5. By: Nina Wald
    Abstract: This paper investigates the causal impact of displacement on health outcomes for Colombian children of different age cohorts. It uses the Colombian Demographic and Health Survey 2010, which provides both a number of health outcomes and information about displacement of households. Two different empirical strategies are employed to identify the impact of displacement on child health, namely a linear regression model and propensity score matching. In order to capture different dimensions of health, four health outcomes are used as dependent variables: (i) height-for-age z-scores; (ii) subjective health status; (iii) affiliation to a health insurance; and (iv) having a health problem last month. Overall, a negative relationship between displacement and child health is documented. In line with findings from African and Asian countries, displacement increases the likelihood for malnutrition for young children and primary school children. Moreover, being displaced leads to a lower subjective health status for children from all age cohorts. Yet, displaced children are not affected by health problems significantly more often than non-displaced children. Last, but not least, displaced children from all age cohorts are significantly less likely to have health insurance.
    Keywords: Child Health, Displacement, Armed Conflict, Colombia, Propensity Score Matching
    JEL: C21 D19 I13 O54
    Date: 2014
  6. By: Rodrigo Ceni (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: This paper analyzes how changes in the social security scheme affect the participation path of workers between the formal and the informal sectors. The choice between the formal and informal sectors is completely voluntary. In this framework, individuals, depending on the retirement program and their endowment of human capital, construct their decision paths in the labor market. I use Argentinean panel data from the period 1995-2011 to estimate a structural model, and this is used to evaluate changes in the workers' behavior when the pension scheme changes. Among the main results, if the parameters are fixed as in the PAYG, there is a slight reduction in the years of the formality and the percentage of workers who achieve a full pension. Moreover, the increase of the requirement to achieve a full pension to 35 years in the formality, increases the percentage of workers in formality over 45 and the number of the years working formally but it decreases the achievement of a pension at all educational levels. The decrease of that requirement has an effect on the reduction of the years in formality even for those who are not affected directly, the high part of the distribution of the high educated. Finally, if the minimum age to achieve a pension is now 67 instead of 65, there is an important increment in the formality and the full pension achievement especially for the low educated workers.
    Keywords: informality, discrete choice, pension schemes, Argentina
    JEL: E26 J24 J26 O17
    Date: 2014–10
  7. By: Valdés, Alberto; Foster, William E.
    Abstract: This paper presents what is known about the role of agrarian reform and the subsequent counter reform in producing a successful dynamic evolution of Chilean agriculture.
    Keywords: Agricultural policies, Land tenure, Farm structure, Agrarian reform, Incentives, collective farms, asentamientos,
    Date: 2014

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