nep-lam New Economics Papers
on Central and South America
Issue of 2015‒10‒10
six papers chosen by

  1. Social policy and economic growth in some Latin American countries (1980 – 2010) By Clarimar Pulido; Jose Ustorgio Mora Mora
  2. The Renegotiation of PPP Contracts: An Overview of its Recent Evolution in Latin America By José Luis Guasch; Daniel Benitez; Irene Portabales; Lincoln Flor
  3. Analyzing the decision to listen to recorded music. A microeconometric approach By Jose A Bermudez Trivino; Lina M Medina Hurtado; Luis Fernando Aguado Quintero
  4. Purchasing Power Parity in selected Latin American Countries By Bal Harun; Ball Esra; Manga Müge
  5. Long-Term Direct and Spillover Effects of Job Training: Experimental Evidence from Colombia By Herrera Prada, Luis Omar; Kugler, Adriana D.; Kugler, Maurice; Saavedra, Juan Esteban
  6. Estructura agraria y dinámica de pobreza rural en el Perú By Escobal, Javier; Armas, Carmen

  1. By: Clarimar Pulido; Jose Ustorgio Mora Mora (Faculty of Economics and Management, Pontificia Universidad Javeriana Cali)
    Abstract: This paper analyzes the impact that social public policies might have had on the economic growth of Argentina, Brazil, Colombia, Chile, Mexico, and Venezuela during the period of 1980 to 2010. It also examines the hypothesis of convergence in these countries. To accomplish this goal, it uses panel data analysis on data extracted from the CEPAL and the Penn World Table databases. Empirical results are consistent with those found by Barro and Lee (1991), Caselli, Esquivel, and Lefort (1996), and Barro and Sala-i-Martin (2004). In other words, it was found that social public policies have positively influenced growth in these economies. Particularly, it was found that there are non-observed variables (fixed effects) that positively affect the economic growth in Venezuela and Chile; meanwhile there are other non-observed variables that might be negatively affecting growth in Brazil and Mexico. Regarding the convergence hypothesis, results reveal that the speed of convergence diminishes as real income rises, implying that these countries might be converging to their steady states.
    Keywords: Economic growth, social policy, Latin
    JEL: I25 E24 O54 O47
    Date: 2015–09
  2. By: José Luis Guasch; Daniel Benitez; Irene Portabales; Lincoln Flor
    Abstract: This paper analyses the experience, high incidence, lesson learned and reflections on the issue renegotiations in Latin America, based in the evolution of PPP contracts through the last 25 years. The paper also shows how countries via new PPP laws, regulations, norms and specific platforms can reduce the incidence and the incentives to renegotiate contracts. Based in experience in the last two decades, many countries in the region have improved renegotiation practices and regulations/framework through their PPP legislation and associated regulations, such as Peru (2008), Chile (2010), Colombia (2011) or Mexico (2012.) The preliminary findings show advances in the implementation of platforms to address renegotiations and new trends in the renegotiations of contracts particularly in complex projects and where governments are providing financial or credit enhancement, such as sharing risk or co-financing.
    Keywords: Latin America, contracts
    Date: 2014–12
  3. By: Jose A Bermudez Trivino; Lina M Medina Hurtado; Luis Fernando Aguado Quintero (Faculty of Economics and Management, Pontificia Universidad Javeriana Cali)
    Abstract: In order to analyze the determining factors of the decision of listening to recorded music in Colombia, participation equations are estimated in the document. To do so, probit models are estimated using micro–data from the Encuesta de Consumo Cultural 2008 [Cultural Consumption Survey] for Colombia. The empírical results show that higher education, greater passive cultural participation, and positioning in a medium and high social–economic strata are the main determining factors of the decision of listening to recorded music. On the other hand, a factor that decreases the likelihood of listening to recorded music is self-declaring African– Colombian–descendent. This document contributes to the limited empirical literature on the determinants of cultural participation in Latin American countries.
    Keywords: recorded music, cultural participation, probit models, Colombia
    JEL: Z11 D12 C25
    Date: 2015–06
  4. By: Bal Harun (Çukurova University); Ball Esra (Çukurova University); Manga Müge (Çukurova University)
    Abstract: The Purchasing Power Parity hypothesis has important policy implications for countries. Therefore it is important to determine the validity of the Purchasing Power Parity. This study investigates the validity of the long run Purchasing Power Parity for selected Latin American countries, in a sample of 4 countries, namely, Brazil, Colombia, Chili and Mexico utilizing Panel unit root tests using monthly data from the period of January 2000 to December 2014. The results show Purchasing Power Parity holds for the selected Latin American Countries. The results show that PPP can be used to determine the equilibrium exchange rate for Brazil, Colombia, Chili and Mexico under this study.
    Keywords: Purchasing Power Parity, Panel unit root tests, Latin American Countries
    JEL: C23 F31
  5. By: Herrera Prada, Luis Omar; Kugler, Adriana D.; Kugler, Maurice; Saavedra, Juan Esteban
    Abstract: We use administrative data to examine medium and long-term formal education and labor market impacts among participants and family members of a randomized vocational training program for disadvantaged youth in Colombia. In the Colombian program, vocational training and formal education are complementary investments: relative to non-participants, randomly selected participants are more likely to complete secondary school and to attend and persist in tertiary education eight years after random assignment. Complementarity is strongest among applicants with high baseline educational attainment. Training also has educational spillover effects on participants’ family members, who are more likely to enroll in tertiary education. Between three and eight years after randomization, participants are more likely to enter and remain in formal employment, and have formal sector earnings that are at least 11 percent higher than those of non-participants.
    Keywords: education complementarities; formal employment; long-term effects; randomized experiments; spillover effects; vocational training; youth employment
    JEL: C9 I2 J24 J68 O2
    Date: 2015–10
  6. By: Escobal, Javier (Grupo de Análisis para el Desarrollo (GRADE)); Armas, Carmen
    Abstract: A partir de un panel provincial para el periodo entre los censos agropecuarios de 1994 y el 2012, este estudio pretende esclarecer el signo de la relación entre estructura agraria y dinámicas de pobreza rural en el Perú. Los resultados descriptivos revelan que las provincias con reducciones importantes en las tasas de pobreza rural son aquellas cuyas unidades agropecuarias tenían, al inicio del periodo, una mayor cantidad de tierra agrícola —en equivalente de riego—, una estructura de propiedad menos fragmentada, una distribución de la tierra más equitativa y una mayor proporción de productores con capacidad de innovación tecnológica. Por otro lado, los resultados econométricos sugieren que un importante determinante de la dinámica de pobreza rural observada es el tamaño de la propiedad, y no la estructura agraria. Asimismo, se muestra que las provincias cuya tasa de emigración es más alta y cuya tasa de inmigración es más baja son las que sufren un mayor aumento de la pobreza rural. Por último, junto con variables que pueden estar determinando un acceso diferenciado a los mercados, persiste un impacto positivo del grado de diversificación de la actividad productiva sobre las posibilidades de generar dinámicas de reducción de la pobreza en áreas rurales.
    Keywords: Estructura agraria, Pobreza, Zonas rurales, Agrarian structure, Poverty, Rural areas, Peru
    JEL: Q12 I32
    Date: 2015

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