nep-lam New Economics Papers
on Central and South America
Issue of 2017‒05‒28
three papers chosen by

  1. Beresford's Revenge: British equity holdings in Latin America, 1869-1929 By Grossman, Richard
  2. Long-term effects of fiscal policy in Uruguay By Leonel Muinelo-Gallo; Oriol Roca-Sagalés
  3. Structural Change, Fundamentals and Growth: A Framework and Case Studies By Margaret McMillan; Dani Rodrik; Claudia Sepulveda

  1. By: Grossman, Richard
    Abstract: This paper presents monthly capital gain, dividend yield, and total return indices, and measures of total capitalization for common equity of Latin American and Caribbean-based firms quoted on the London Stock Exchange during 1869-1929. In addition to an overall Latin American index, I present and analyze sub-indices for countries (e.g., Argentina, Brazil, Chile) and industrial sectors (e.g., banks, mines, railways) with extensive UK listings. I compare the Latin American and Argentinian indices with data from Argentina's Bolsa index during 1900-1929. I also use the indices to compare equity market fluctuations across Latin American sectors and countries during the Baring crisis of 1890.
    Keywords: Argentina; Baring crisis; economic history; Latin America; London Stock Exchange
    JEL: G01 G10 N23 N26
    Date: 2017–05
  2. By: Leonel Muinelo-Gallo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Oriol Roca-Sagalés (Universitat Autònoma de Barcelona (Spain). Departamentd’Economia Aplicada)
    Abstract: Despite being one of the countries with lower levels of inequality in Latin America, Uruguay is characterized by persistent high inequality levels in relation to that upper-middle or high income countries with similar relative size of the public sector. This paper investigates to what extent these two features are interconnected and whether economic growth affects and is affected by this relationship. Empirical results from Vector Autoregression (VAR) models reveal the existence of important long-run Keynesian effects associated to public expenditure, and that the country’s expenditure structure is, in part, responsible for increasing disposable household’s income inequality, being the public investment the only fiscal policy that breaks this tendency.
    Keywords: fiscal policy, economic growth, income inequality, VAR models, Uruguay
    JEL: C5 E6 H3
    Date: 2017–02
  3. By: Margaret McMillan; Dani Rodrik; Claudia Sepulveda
    Abstract: Developing countries made considerable gains during the first decade of the 21st century. Their economies grew at unprecedented rates, resulting in large reductions in extreme poverty and a significant expansion of the middle class. But more recently that progress has slowed with an economic environment of lackluster global trade, not enough jobs coupled with skills mismatches, continued globalization and technological change, greater income inequality, unprecedented population aging in richer countries, and youth bulges in the poorer ones. This essay examines how seven key countries fared from 1990-2010 in their development quest. The sample includes seven developing countries—Botswana, Ghana, Nigeria, Zambia, India, Vietnam and Brazil —all of which experienced rapid growth in recent years, but for different reasons. The patterns of growth are analyzed in each of these countries using a unifying framework which draws a distinction between the “structural transformation” and “fundamentals” challenge in growth. Out of these seven countries, the traditional path to rapid growth of export oriented industrialization only played a significant role in Vietnam.
    JEL: O11
    Date: 2017–05

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