Deindustrialization and economic policies in the Pacific Alliance countries: 1986-2009

Abstract

The objective of the study was to analyze the premature deindustrialization experienced by the countries of the Pacific Alliance between 1986 -2009. The research was applied, non-experimental and quantitative. In the hypothesis test, panel data regression techniques have been used with ordinary least squares and fixed effects approaches; Statistical information has been obtained from the databases of: GGDC 10-Sector, UNCTADStatistics, WDI-BM, CEPALSTAT, and BID-WP-346. The result of the estimation of regression equations confirms the hypothesis on the decrease in manufacturing employment by -0.44%, -0.78%, 0.05% and -1.08% as a result of the 1% advance in financial and tax reforms, privatizations and labor flexibility respectively; Likewise, manufacturing value added has been negatively affected by -0.63%, -0.03%, -0.26% and -0.02% due to the 1% advance in trade liberalization, financial reform, tax reform and privatizations respectively. The statistical value of R2 and F of both equations are statistically significant. economic policy, Keywords--Deindustrialization, employment and manufacturing value added.Digital Object Identifier: (only for full papers, inserted by LACCEI). ISSN, ISBN: (to be inserted by LACCEI).