nep-lam New Economics Papers
on Central and South America
Issue of 2020‒07‒20
three papers chosen by

  1. Environmental impacts and policy responses to Covid-19: A view from Latin America By Alejandro Lopez Feldman; Carlos Chavez, Maria Velez, Hernan Bejarano, Ariaster Chimeli, Jose Feres, Juan Robalino
  2. Global shocks and emerging economies: disentangling the commodity roller coaster By Mauro Sayar Ferreira; André Cordeiro Valério
  3. Smart Specialisation, an innovation bridge between the EU and Latin America By Albane Demblans; Cristiano Cagnin; Javier Gomez

  1. By: Alejandro Lopez Feldman; Carlos Chavez, Maria Velez, Hernan Bejarano, Ariaster Chimeli, Jose Feres, Juan Robalino
    Abstract: COVID-19 is currently having major short run effects with possible serious long run consequences on economic and social aspects, including several potential implications for the environment and the management of natural resources in Latin America. In this paper, we discuss the possible effects of the pandemic on air pollution, deforestation and other relevant environmental dimensions across the region. With contributions from environmental economists from eight countries, we give an overview of the initial and expected environmental effects of this health crisis. We discuss potential effects on environmental regulations and possible policy interventions, as well as an agenda for future research for those interested in the design and evaluation of environmental policies relevant for the Latin American context.
    Keywords: Air pollution; COVID-19; coronavirus; deforestation; environmental impacts; environmental policy; Latin America; pandemic; SARS-Cov2-19
    JEL: H12 Q22 Q23 Q53 Q56
    Date: 2020–07–13
  2. By: Mauro Sayar Ferreira (Cedeplar-UFMG); André Cordeiro Valério (EPGE-FGV)
    Abstract: Shocks in commodity prices have been viewed as a major driver of emerging economies’ business cycle. We show this is not the case for Brazil, Chile, Colombia, and Peru (all commodity exporters) after allowing for a full macro-finance linkage, at world and domestic level, in a structural VAR. To achieve our results, the international bloc of the VAR includes a measure of global GDP, an aggregate commodity price index, and a volatility index (VIX). The presence of this last variable, from which we capture global economic uncertainty shock, is responsible for modifying established results. Global demand shocks have been the main international driver of the business cycle in Brazil, Chile, and Peru, while global economic uncertainty shocks have been the most important international driver of the Colombian GDP. Aggregate shocks to the world commodity market become more relevant only when a less structured model of the global economy is in place, since commodity prices react endogenously to innovations elsewhere, playing a major role as a propagator. The econometric models also include the following domestic variables: GDP, CPI, sovereign spread, nominal exchange rate, and policy interest rate.
    Keywords: Global shocks; business cycle; uncertainty; commodity price; global activity; emerging economies; Bayesian SVAR.
    JEL: C32 E32 F41 F44 F62 F63 O54
    Date: 2020–06
  3. By: Albane Demblans (European Commission - JRC); Cristiano Cagnin (European Commission - JRC); Javier Gomez (European Commission - JRC)
    Abstract: Since 2016, the International Urban Cooperation Programme has been a vehicle for cooperation between the European Union and Latin America on the topic of innovation for local and regional development. In this endeavour, the Smart Specialisation approach originally deployed in the EU, and its potential to foster localised, innovation-driven sustainable territorial development, have been a great source of inspiration. Building on the 20 regional pairings between regions from the EU and Latin America (Mexico, Brazil, Colombia, Argentina, Chile and Peru), this Science for Policy Report analyses the outcomes and the lessons generated by transcontinental cooperation and examines the potential to enshrine the EU touch on Smart Specialisation in the innovation landscape of Latin America.
    Keywords: European Union, Latin America, innovation, local and regional development, Smart Specialisation
    Date: 2020–05

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