Beyond Commodities: The Growth Challenge of Latin America and the Caribbean

Abstract

This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy

“…Predictions for the Early 2010s are the least precise, but this can be corrected by a substitution of infrastructure variables, as discussed in Section 4. While discrepancies for country-specific results derived from crosscountry studies are not exceptional in the literature (see results for LAC countries inAraujo et al, 2016), our residual compares very favorably to the Ethiopia results derived from the cross-country OLS regression model reported in IMF (2013a), where the residual effect predominates. Our residuals are quite small as depicted previously inFigure 3(gray bars).…”

“…11 Note that the country fixed effect cancels out because it is time-invariant. To 11 Our calculation differs slightly from the one in Brueckner (2013) and Araujo et al (2016) in two aspects. First, we do not use the actual lag of the growth rate for calculating the persistence effect from equation (2) but instead take the growth rate as predicted from the model because we think it performs better in the context of a growth acceleration in a low-income economy.…”

“…We use an empirical growth model originally set up by Loayza et al (2005) and improved by Brueckner (2013). These cross-country growth regression models were originally constructed to investigate the structural (as opposed to cyclical) drivers of growth in Latin America and the Caribbean (Araujo et al, 2016).…”

Wage Inequality in Latin America: Understanding the Past to Prepare for the Future

“…Growth was a fundamental driver of improvements in labor market outcomes (Araujo et al 2016), which in turn were the main drivers of reductions in inequality in the 2000s. These improvements were particularly pro-poor.…”

Productivity Growth in Latin American and the Caribbean

“…The approach ofLoayza et al (2005) is followed, with some modifications in the variables and methods, seeAraujo et al (2016a) for a more indepth explanation of the methods.…”