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Beyond Commodities

Author

Listed:
  • Jorge Thompson Araujo
  • Ekaterina Vostroknutova
  • Markus Brueckner
  • Mateo Clavijo
  • Konstantin M. Wacker
Abstract
Beyond Commodities shows that Latin America and the Caribbean’s growth performance over the last decade cannot be reduced to the commodity boom: growth-promoting reforms that strengthened financial development, increased trade openness and improved infrastructure development also played a significant role and can continue doing so. Based on the econometric analysis of panel data from the 1970-2010 period for 126 countries, the study shows that, while the commodity boom facilitated growth in most of the region, it did not determine it. Domestic pro-growth policies and the maintenance of a sound macro-fiscal framework played a central role in explaining the region’s good performance during last decade. It also shows that new growth “stars” such as Panama, Peru, Colombia and the Dominican Republic emerged during this period. In addition, a benchmarking exercise reveals which policy gaps will lead to the highest potential growth-payoffs for each country and helps identify potential trade-offs. Finally, with the worsening of external conditions, the authors conclude that the countries of Latin America and the Caribbean have no choice but to turn their attention to domestic drivers to keep growth going, as the structural reforms agenda remains unfinished.

Suggested Citation

  • Jorge Thompson Araujo & Ekaterina Vostroknutova & Markus Brueckner & Mateo Clavijo & Konstantin M. Wacker, 2016. "Beyond Commodities," World Bank Publications - Books, The World Bank Group, number 25321.
    • Handle: RePEc:wbk:wbpubs:25321
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    References listed on IDEAS

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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Bridging the Gap in LAC Infrastructure
      by ? in Latin America & Caribbean: Opportunities for All on 2015-07-15 05:07:00
    2. Latin America: Is There Hope for Prosperity After the Commodity Price Boom?
      by ? in World Bank Blogs on 2016-03-18 02:20:00
    3. Links for 05-30-15
      by ? in Economist's View on 2015-05-30 12:06:00
    4. Is there hope for prosperity in Latin America?
      by ? in Forum:Blog on 2016-03-21 15:21:00

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