3 research outputs found
Political economy of China and US value chains in Latin America
Get PDFIn this paper, I aim to provide empirical evidence about how an efficient integration into global value chains can promote economic growth through industrial upgrading and prevention of external imbalances in Latin America (LATAM). I define US-China political economics in this region for the period from 1998 to 2015. The research uses TiVA raw data that I obtained from the UNCTAD-EORA database for the US, China, and nine major economies in LATAM.
The development of global value chains has brought unprecedented alternatives for commercial alliances and industrial strategies to developing countries. An effective integration of LATAM onto global value chains through forward linkages or increases in indirect value added (DVX) can strengthen both their industrial development and manufacturing industries to achieve the macroeconomic goal of long-term economic growth. China as the world鈥檚 fastest growing economy when trade is measured by the value added has stimulated forward linkages and economic development throughout several developing countries within the ASEAN+3, EU -13, and LATAM since 1998. However, strategic competition with the US has prevented China from further expanding its value chain to LATAM. Therefore, the whole region endures a peripherical position in relation to global value chains, as it is still too reliant on lower value-added investments in extractive industries. Yet strengthening TiVA exchanges with China, along with the US, is critical to broadening the alternatives for a sound and sustainable economic development in LATAM
Political economy of China and US value chains in Latin America
No full textIn this paper, I aim to provide empirical evidence about how an efficient integration into global value chains can promote economic growth through industrial upgrading and prevention of external imbalances in Latin America (LATAM). I define US-China political economics in this region for the period from 1998 to 2015. The research uses TiVA raw data that I obtained from the UNCTAD-EORA database for the US, China, and nine major economies in LATAM. The development of global value chains has brought unprecedented alternatives for commercial alliances and industrial strategies to developing countries. An effective integration of LATAM onto global value chains through forward linkages or increases in indirect value added (DVX) can strengthen both their industrial development and manufacturing industries to achieve the macroeconomic goal of long-term economic growth. China as the world鈥檚 fastest growing economy when trade is measured by the value added has stimulated forward linkages and economic development throughout several developing countries within the ASEAN+3, EU -13, and LATAM since 1998. However, strategic competition with the US has prevented China from further expanding its value chain to LATAM. Therefore, the whole region endures a peripherical position in relation to global value chains, as it is still too reliant on lower value-added investments in extractive industries. Yet strengthening TiVA exchanges with China, along with the US, is critical to broadening the alternatives for a sound and sustainable economic development in LATAM.Este documento provee evidencia emp铆rica sobre c贸mo una integraci贸n eficiente a las cadenas de valor globales puede promover el crecimiento econ贸mico a trav茅s de la mejora industrial y a su vez la prevenci贸n de desbalances externos en Latino Am茅rica (LATAM). Se definen las pol铆ticas econ贸micas de Estados Unidos y China en la regi贸n para el periodo 1998-2015. La investigaci贸n usa datos primarios para calcular el TiVA, obtenidos de la base de datos de UNCTAD-EORA para Estados Unidos, China y nueve econom铆as latinoamericanas. El desarrollo de cadenas de valor globales ha tra铆do alternativas sin precedentes en la creaci贸n de alianzas comerciales y estrategias industriales para pa铆ses en v铆as de desarrollo. Una integraci贸n efectiva de LATAM a las cadenas de valor globales, a trav茅s de v铆nculos hacia adelante o incrementos en el valor agregado indirecto, puede fortalecer tanto el desarrollo industrial y manufacturero, lo que permite alcanzar el objetivo macroecon贸mico de crecimiento econ贸mico de largo plazo. China es la econom铆a con mayor crecimiento a nivel mundial, lo que se mide en t茅rminos de valor agregado, que a su vez fue un est铆mulo para la constituci贸n de v铆nculos hacia adelante y de desarrollo econ贸mico en numerosos pa铆ses en v铆as de desarrollo de ASEAN+3, EU-13 y LATAM, desde 1998. Sin embargo, su competencia estrat茅gica con Estados Unidos ha frenado la expansi贸n de su propia cadena de valor en LATAM. Por lo tanto, la totalidad de esta regi贸n se circunscribe en una posici贸n perif茅rica en relaci贸n con las cadenas de valor globales, al mantenerse dependiente a inversiones de bajo valor agregado en industrias extractivas. El fortalecimiento del TiVA del comercio con China y Estados Unidos es cr铆tico para el desarrollo econ贸mico y sostenible en LATAM
Political economy of China and US value chains in Latin America
No full textIn this paper, I aim to provide empirical evidence about how an efficient integration into global value chains can promote economic growth through industrial upgrading and prevention of external imbalances in Latin America (LATAM). I define US-China political economics in this region for the period from 1998 to 2015. The research uses TiVA raw data that I obtained from the UNCTAD-EORA database for the US, China, and nine major economies in LATAM. The development of global value chains has brought unprecedented alternatives for commercial alliances and industrial strategies to developing countries. An effective integration of LATAM onto global value chains through forward linkages or increases in indirect value added (DVX) can strengthen both their industrial development and manufacturing industries to achieve the macroeconomic goal of long-term economic growth. China as the world鈥檚 fastest growing economy when trade is measured by the value added has stimulated forward linkages and economic development throughout several developing countries within the ASEAN+3, EU -13, and LATAM since 1998. However, strategic competition with the US has prevented China from further expanding its value chain to LATAM. Therefore, the whole region endures a peripherical position in relation to global value chains, as it is still too reliant on lower value-added investments in extractive industries. Yet strengthening TiVA exchanges with China, along with the US, is critical to broadening the alternatives for a sound and sustainable economic development in LATAM.Este documento provee evidencia emp铆rica sobre c贸mo una integraci贸n eficiente a las cadenas de valor globales puede promover el crecimiento econ贸mico a trav茅s de la mejora industrial y a su vez la prevenci贸n de desbalances externos en Latino Am茅rica (LATAM). Se definen las pol铆ticas econ贸micas de Estados Unidos y China en la regi贸n para el periodo 1998-2015. La investigaci贸n usa datos primarios para calcular el TiVA, obtenidos de la base de datos de UNCTAD-EORA para Estados Unidos, China y nueve econom铆as latinoamericanas. El desarrollo de cadenas de valor globales ha tra铆do alternativas sin precedentes en la creaci贸n de alianzas comerciales y estrategias industriales para pa铆ses en v铆as de desarrollo. Una integraci贸n efectiva de LATAM a las cadenas de valor globales, a trav茅s de v铆nculos hacia adelante o incrementos en el valor agregado indirecto, puede fortalecer tanto el desarrollo industrial y manufacturero, lo que permite alcanzar el objetivo macroecon贸mico de crecimiento econ贸mico de largo plazo. China es la econom铆a con mayor crecimiento a nivel mundial, lo que se mide en t茅rminos de valor agregado, que a su vez fue un est铆mulo para la constituci贸n de v铆nculos hacia adelante y de desarrollo econ贸mico en numerosos pa铆ses en v铆as de desarrollo de ASEAN+3, EU-13 y LATAM, desde 1998. Sin embargo, su competencia estrat茅gica con Estados Unidos ha frenado la expansi贸n de su propia cadena de valor en LATAM. Por lo tanto, la totalidad de esta regi贸n se circunscribe en una posici贸n perif茅rica en relaci贸n con las cadenas de valor globales, al mantenerse dependiente a inversiones de bajo valor agregado en industrias extractivas. El fortalecimiento del TiVA del comercio con China y Estados Unidos es cr铆tico para el desarrollo econ贸mico y sostenible en LATAM
