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Growth, Structural Change and Technological Capabilities. Latin America in a Comparative Perspective

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Author Info
Mario Cimoli
Marcio Holland
Gabriel Porcile
Annalisa Primi
Sebastiàn Vergara

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Abstract

Countries differ in terms of technological capabilities and complexity of production structures. According to that, countries may follow different development strategies: one based on extracting rents from abundant endowments, such as labor or natural resources, and the other focused on creating rents through intangibles, basically innovation and knowledge accumulation. The present article studies international convergence and divergence, linking structural change with trade and growth through a North South Ricardian model. The analysis focuses 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 favor of R&D intensive sectors allows achieving higher rates of growth in the long term and increases the capacity to respond to demand changes. A virtuous export-led growth requires laggard countries to reduce the technological gap with respect to more advanced ones. Hence, abundance of factor endowments requires to be matched with technological capabilities development for countries to converge in the long term.

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Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2006/11.

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Date of creation: 07 May 2006
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Handle: RePEc:ssa:lemwps:2006/11

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Related research
Keywords: Latin America; Structural Change; Technological Capabilities; Growth;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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  10. Rajneesh Narula, 2004. "Understanding absorptive capacities in an "innovation systems" context consequences for economic and employment growth," DRUID Working Papers 04-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
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  11. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December. [Downloadable!] (restricted)
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  12. 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. [Downloadable!]
  13. 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. [Downloadable!]
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  15. Michael Peneder, 2004. "Tracing Empirical Trails of Schumpeterian Development," WIFO Working Papers 229, WIFO. [Downloadable!]
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  16. 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.
  17. 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.
  18. 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. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fabio Montobbio & Valerio Sterzi, 2008. "Inventing Together: Exploring the Nature of International Knowledge Spillovers in Latin America," CESPRI Working Papers 225, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Nov 2008. [Downloadable!]
  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. [Downloadable!]
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