This is a collection of essays by experts on Latin America. They all assess the impact of China''s global power on the region. The general conclusion is that, on one
hand "China''s trade impact on Latin America is "... positive; directly, through a boom of exports, and indirectly, through better terms of trade" ( p. 7). On the other hand, China''s demand favors Latin American primary goods. This raises the possibility of Dutch diseases and resource curses in the form of resource and price booms. Even so, China offers a good development model for Latin America, because the former never followed a textbook
example of economic growth and development. Instead, China''s performance has depended on pragmatic policies.
In the end Latin American
countries need not fear China, except in manufacturing, technological progress, and foreign direct investment (FDI). For example,
wages in China compare well to wages in Latin America; five Latin American countries have an hourly wage rate below China''s and 11 above. The
productivity of physical and human capital is also comparable. However, between 1980 and 2000 total factor productivity of Latin American countries has been negative. This seems to underscore the fact that China is increasingly attracting more U.S. FDI than Latin America. In spite of all that China has a positive effect on Latin America.
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