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Should Latin America Fear China?

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  • Eduardo Lora

Abstract

This paper compares growth conditions in China and Latin America to assess fears that China will displace Latin America in the coming decades. China`s strengths include the size of the economy, macroeconomic stability, abundant low-cost labor, the rapid expansion of physical infrastructure, and the ability to innovate. China`s weaknesses, stemming from insufficient separation between market and state, include poor corporate governance, a fragile financial system and misallocation of savings. Both regions share important weaknesses: the rule of law is weak, corruption endemic, and education is poor and very poorly distributed.

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  • Eduardo Lora, 2005. "Should Latin America Fear China?," Research Department Publications 4409, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4409
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    References listed on IDEAS

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    Cited by:

    1. Nguyen, Anh & Nguyen, Nhat, 2010. "Vietnam Industrial Policy and Large Economic Groups: A discussion," MPRA Paper 63461, University Library of Munich, Germany.
    2. Nanno Mulder & Rodrigo Paiilacar & Soledad Zignago, 2009. "Market Positioning of Varieties in World Trade: is Latin America Losing Out on Asia?," Working Papers 2009-09, CEPII research center.
    3. Rhys Jenkins, 2008. "China's Global Growth and Latin American Exports," WIDER Working Paper Series RP2008-104, World Institute for Development Economic Research (UNU-WIDER).
    4. De la Cruz Gallegos Jose Luis & Ivanova Boncheva Antonina & Ruiz-Porras Antonio, 2008. "Competition between Latin America and China for US Direct Investment," Global Economy Journal, De Gruyter, vol. 8(2), pages 1-22, June.
    5. Castro-Gonzáles, Segundo & Peña-Vinces, Jesús C. & Guillen, Jorge, 2016. "The competitiveness of Latin-American economies: Consolidation of the double diamond theory," Economic Systems, Elsevier, vol. 40(3), pages 373-386.

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