By Gabriele Tondl
This quantity is a set of papers offered on the seventh convention assembly of the Arnoldshain learn community in Vienna 2006. quite a few researchers from the ecu Union and Latin American nations have contributed papers on alternate, integration, open economic climate macroeconomics and the institutional framework, which all play a massive position for fiscal improvement in Latin the United States. the matter of corruption is additionally mentioned.
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Additional info for Trade, Integration and Economic Development: The EU and Latin America (Schriftenreihe der Österreichischen Gesellschaft für Europaforschung (ECSA Austria) ... Association of Austria Publication Series)
Sample text
Mexico and Venezuela are major oil producers and Chile is the world´s major copper producer. Oil producers possess also a key product to develop intra-LA trade. However, some Latin American countries have developed a diversified economic structure and export also more advanced manufactures: For example, Brazil exports motor vehicles and pharmaceuticals, Mexico exports machinery and components, to a large extent products of its maquilladora industries, and Costa Rica produces electronic circuits (SIECA 2007).
Mercosur, the Andean Community and CACM are free trade areas which are well established and which have impressively fostered intra-LA trade. In a number of LA countries, such as Argentina and Bolivia, intra-LA trade has now become most important. Other major LA economies like Brazil and Chile managed well to diversify their export markets. The implementation of FTA also promoted FDI flows into LA. Thus Mexico and Central America received important FDI from US companies which aimed to benefit from lower labour costs in their host economy and the easy trading of components within NAFTA or CAFTA.
D. Synthesis and scheme of the paper A question is posed about the recurrent external crises in Argentina focusing the explanation on the role of the long-run performance of exports. As shown in Figure 1, during 1949-1976 the exports to GDP ratio is continuously below 10 per cent. Two episodes of trade liberalization after 1976 and in the nineties were accompanied by a rise in the local trend. The working hypothesis is that along these decades the structural exports performance sets admissible levels of external debt through the intertemporal budget constraint of the economy.