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Growth, structural change and technological capabilities Latin America in a comparative perspective

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  • Cimoli, Mario
  • Porcile, Gabriel
  • Primi, Annalisa
  • Vergara, Sebastián
  • Brito, Marcio Holland de

Abstract

Countries differ in terms of technological capabilities and complexity of production structures.According to that, countries may follow different development strategies: one based onextracting rents from abundant endowments, such as labor or natural resources, and the otherfocused on creating rents through intangibles, basically innovation and knowledgeaccumulation. The present article studies international convergence and divergence, linkingstructural change with trade and growth through a North South Ricardian model. The analysisfocuses on the asymmetries between Latin America and mature and catching up economies.Empirical evidence supports that a shift in the composition of the production structure in favorof R&D intensive sectors allows achieving higher rates of growth in the long term andincreases the capacity to respond to demand changes. A virtuous export-led growth requireslaggard countries to reduce the technological gap with respect to more advanced ones. Hence,abundance of factor endowments requires to be matched with technological capabilitiesdevelopment for countries to converge in the long term.

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Paper provided by Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil) in its series Textos para discussão with number 212.

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Date of creation: 16 Jun 2010
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Handle: RePEc:fgv:eesptd:212

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  1. Daniele Archibugi & Alberto Coco, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," CEIS Research Paper 44, Tor Vergata University, CEIS.
  2. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  3. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Mario, Cimoli, 2005. "Heterogeneidad estructural, asimetrías tecnológicas y crecimiento en América Latina
    [Structural heterogeneity, technological asymmetries and growth in Latin America]
    ," MPRA Paper 3832, University Library of Munich, Germany.
  5. Mario Cimoli & Nelson Correa, 2002. "Trade Openess and Technological Gaps in Latin America: a Low Growth Trap," LEM Papers Series 2002/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  6. Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers.
  7. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
  8. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
  9. Reinhardt, Nola & Peres, Wilson, 2000. "Latin America's New Economic Model: Micro Responses and Economic Restructuring," World Development, Elsevier, vol. 28(9), pages 1543-1566, September.
  10. Barro, Robert J. & Lee, Jong-Wha, 1994. "Sources of economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 1-46, June.
  11. Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, December.
  12. Dalum, Bent & Laursen, Keld & Verspagen, Bart, 1999. "Does Specialization Matter for Growth?," Industrial and Corporate Change, Oxford University Press, vol. 8(2), pages 267-88, June.
  13. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  14. Nelson, Richard R & Pack, Howard, 1999. "The Asian Miracle and Modern Growth Theory," Economic Journal, Royal Economic Society, vol. 109(457), pages 416-36, July.
  15. Michael Peneder, 2004. "Tracing Empirical Trails of Schumpeterian Development," Papers on Economics and Evolution 2004-09, Philipps University Marburg, Department of Geography.
  16. Cimoli, Mario & Dosi, Giovanni, 1995. "Technological Paradigms, Patterns of Learning and Development: An Introductory Roadmap," Journal of Evolutionary Economics, Springer, vol. 5(3), pages 243-68, September.
  17. Narula,Rajneesh, 2004. "Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  18. Mario Cimoli & Jorge Katz, 2003. "Structural reforms, technological gaps and economic development: a Latin American perspective," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 387-411, April.
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Cited by:
  1. Fabio Montobbio & Valerio Sterzi, 2008. "Inventing Together: Exploring the Nature of International Knowledge Spillovers in Latin America," KITeS Working Papers 225, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2008.
  2. Jorge E, Mendoza, 2007. "Apertura. Gasto Público Y Convergencia En América Latin: Un Modelo Econometrico Espacial
    [Liberalization, Public Spending And Convergence In Latin America: An Spatial Econometric Model]
    ," MPRA Paper 5561, University Library of Munich, Germany.

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