Latin American Growth : A Trade Perspective
7. June 2019
This paper reviews the determinants of Latin America’s (LatAm) uneven economic progress from an international trade and macro perspective that looks at both historical trends (the second half of last century) and recent events (the China-induced commodities boom). The analysis is backed by an accounting decomposition that links a country’s growth relative to the world (G) to its participation in world export markets through three trade-related channels, an
export pull (EP) that measures the traction exerted by the country’s exports on its growth; an external leverage (EL) that captures the impact on the current account of the country’s real export growth relative to its real import growth, hence its use of external resources; and a domestic response (DR) that measures the impact on the country’s domestic income of the imports resulting from the combined export pull and external leverage.
World Bank Group | Latin American Growth : A Trade Perspective