Growth models and comparative political economy in Latin America

Passos, Níkolas; Morlin, Guilherme Spinato

doi:10.4000/regulation.21444

Cited by 4 publications

(2 citation statements)

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“…This article joins the recent discussion in comparative political economy (CPE) and post-Keynesian economics (PKE) to broaden the geographical scope of the growth model perspective towards emerging economies (Jungmann 2021;Schedelik et al 2021;Blyth et al 2022;Mertens et al 2022;Passos/Morlin 2022). We make two contributions to this research program.…”

Section: Introductionmentioning

confidence: 89%

“…CPE scholars in general, and growth model analyses in particular, however, do rarely take the third major linkagecommodities and their relevance for growth in the Global Southinto account. Yet, initial studies (Mertens et al 2022;Passos/Morlin 2022;Sierra 2022) highlight the importance of commodity exports for an understanding of growth models in emerging economies, particularly in Latin America. IPE scholars, by contrast, analyze commodity markets mostly as global and increasingly financialized markets (Seddon 2020;Baines/Hager 2022) or on the micro level as 'global commodity chains' (Bair 2009;Staritz et al 2018), without studying their interactions with growth models on the national level.…”

Section: Introductionmentioning

confidence: 99%

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Dependency revisited: commodities, commodity-related capital flows and growth models in emerging economies

Schedelik,

Nölke,

May

et al. 2023

European Journal of Economics and Economic Policies Intervention

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The growth model perspective has provided avenues for bridging comparative and international political economy, mainly regarding the Global Financial Crisis and developments within the eurozone. This article aims to contribute to this endeavor by highlighting the joint effects of capital flows and commodity price swings on growth models in emerging capitalist economies. While the literature on dependent financialization has primarily focused on debt-led growth in the Global South, we spell out the negative implications of commodity-based export-led growth. To this end, we first present a stylized depiction of commodity dependence and provide descriptive statistical evidence of its global prevalence. Subsequently, we trace the co-movement of capital flows to emerging economies and commodity prices. We argue that this ‘commodity–finance nexus’ reinforces the pro-cyclical nature of commodity-based growth, financial volatility, and the vulnerability to global boom–bust cycles. Furthermore, we demonstrate that the conventional method for establishing growth models by calculating the relative contributions to growth is ill-suited to capture the commodity-based export-led growth model of highly commodity-dependent economies. Finally, we identify commodity price movements and fiscal policies as major drivers of growth, with an important role for domestic politics as an intervening variable.

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Section: Introductionmentioning

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Dependency revisited: commodities, commodity-related capital flows and growth models in emerging economies

Schedelik,

Nölke,

May

et al. 2023

European Journal of Economics and Economic Policies Intervention

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Growth drivers in emerging capitalist economies: building blocks for a post-Keynesian analysis and an empirical exploration of the years before and after the Global Financial Crisis

Jungmann

2023

Rev Evol Polit Econ

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This paper contributes to the growth models debate by expanding the concept of growth drivers to emerging capitalist economies (ECEs). Conceptually, the paper synthesizes growth drivers with a growth model operationalization based on GDP growth contributions and financial sector balances. Drawing on post-Keynesian and structuralist economics, as well as, empirical studies, seven growth drivers for ECEs are reviewed: income distribution, price and non-price competitiveness, commodity prices, private debt, foreign direct investment (FDI) and fiscal policy. Descriptive data for these drivers are presented for 19 regionally grouped ECEs between 2000 and 2019. On average, Asian ECEs exhibit higher growth rates, stable real exchange rates, high and increasing non-price competitiveness and high private debt levels. Latin American countries show comparatively lower growth rates, high but decreasing income inequality, unstable exchange rates and relatively expansionary fiscal policy after the Global Financial Crisis (GFC). Central and Eastern European countries generally display medium to high growth rates, lower income inequality, high non-price competitiveness, a substantial FDI stock and, after the GFC, real depreciations and contractionary fiscal policy. The assessment of cross-country growth drivers via bivariate coefficients reveals limited robust results, except for non-price competitiveness, which emerges as a significant driver. Additionally, we find indications that private debt and expansionary fiscal policy became more important for growth in ECEs after the GFC. This is in line with the emergence of domestic demand- and private debt-led growth models in ECEs following the GFC in the course of private deleveraging and austerity policies in developed capitalist economies.

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Components of Autonomous Demand Growth and Financial Feedbacks: Implications for Growth Drivers and Growth Regime Analysis

Woodgate,

Hein,

Summa

2023

Review of Political Economy

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Growth models and comparative political economy in Latin America

Cited by 4 publications

References 63 publications

Dependency revisited: commodities, commodity-related capital flows and growth models in emerging economies

Dependency revisited: commodities, commodity-related capital flows and growth models in emerging economies

Growth drivers in emerging capitalist economies: building blocks for a post-Keynesian analysis and an empirical exploration of the years before and after the Global Financial Crisis

Components of Autonomous Demand Growth and Financial Feedbacks: Implications for Growth Drivers and Growth Regime Analysis

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