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The "China effect" on commodity prices and Latin American export earnings

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  • Jenkins, Rhys Owen

Abstract

The commodity boom between 2002 and 2008 played an importantrole in increasing export earnings from Latin America. Growing demandfrom China for primary products was one factor stimulating the boom.While the direct effects of the growth of exports from Latin Americato China have been extensively explored, the indirect impact of higherChinese demand for commodities on global commodity prices hasreceived less attention. This paper estimates the contribution made bythe growth of Chinese demand to the rise in the prices of the 15 maincommodities exported from the region. On the basis of these estimates,it calculates the total gain for the region as a whole in export revenuesfrom the "China effect" on world prices. It also provides estimates for17 Latin American countries of the net effect of Chinese-induced priceincreases on their trade balances.

Suggested Citation

  • Jenkins, Rhys Owen, 2011. "The "China effect" on commodity prices and Latin American export earnings," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    • Handle: RePEc:ecr:col070:11471
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    Cited by:

    1. Fally, Thibault & Sayre, James E., 2018. "Commodity Trade Matters," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9121v3rt, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Carlos Bianchi & Fernando Isabella & Santiago Picasso, 2021. "La restricción de balanza de Pagos en países especializados en commodities: Repensando el modelo de Thirlwall a la luz del último súper boom de precios," Documentos de Trabajo (working papers) 21-07, Instituto de Economía - IECON.
    3. Jacopo Timini & Ayman El-Dahrawy Sánchez-Albornoz, 2019. "The impact of China on Latin America: trade and foreign direct investment channels," Economic Bulletin, Banco de España, issue JUN.
    4. Juan Manuel Candelo-Viafara & Andrés Felipe Oviedo-Gómez, 2020. "Efecto derrame del mercado internacional en las economías latinoamericanas: los casos de Chile, Brasil, Colombia y México," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 39(70), pages 107-138, July.
    5. Maria-Isabel Ayuda & Ignacio Belloc & Vicente Pinilla, 2022. "Export Boom and Re-Primarisation in Latin America (1994-2019): Determining Factors of Agri-Food Product Exports," Documentos de Trabajo (DT-AEHE) 2206, Asociación Española de Historia Económica.
    6. Richard L. Bernal, 2015. "The Growing Economic Presence of China in the Caribbean," The World Economy, Wiley Blackwell, vol. 38(9), pages 1409-1437, September.
    7. Andrés Pereira Covarrubias & Emmanuel Raju, 2020. "The Politics of Disaster Risk Governance and Neo-Extractivism in Latin America," Politics and Governance, Cogitatio Press, vol. 8(4), pages 220-231.

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