Estimating the impact of trade specialization and trade policy on poverty in developing countries

This paper investigates the impact of trade specialization on poverty. The empirical findings show that in developing countries manufacturing exports contribute to poverty reduction. But agricultural exports have a more significant effect on poverty in low-income countries. The analysis also confirms that trade specialization reduces poverty but under specific trade specialization patterns and policy conditions.     

The effectiveness of forex interventions in four Latin American countries

Many central banks actively intervene in the forex market, although there is no consensus on its impact on the exchange rate level and volatility. We analyze the effects of daily forex interventions in four Latin American economies with inflation targets – namely, Chile, Colombia, Mexico and Peru – by fitting GARCH-type models. These countries represent a broad span of intervention strategies in terms of size and frequency, ranging from pure discretional to rule-based interventions. We find that only first interventions, either isolated or the initial one in a rule-based series, are able to reduce exchange rate volatility, whereas their size plays a minor role.     

Sovereign bond spreads determinants in Latin American countries: Before and during the XXI financial crisis

This paper aims to identify the main determinants of sovereign bond spreads in seven Latin American countries and verify the existence of contagion effect over these markets during the last financial crisis. We apply a panel data framework and find that the inflation, terms of trade ratio and the external debt and international reserves (both as percentage of GDP) are key drivers of sovereign bond spreads. Moreover, we test the crisis impact over emerging economies. Our results show that the crisis has a statistically significant impact on the EMBIG spreads since 2008.     

Sustainable banking in Latin American developing countries: Leading to (mutual) prosperity

This article examines multinational banks’ (MNBs) approaches to corporate social responsibility (CSR) in developing countries’ subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing countries. Finally, we examine the CSR outcomes in Latin America, where banks’ responsible conduct has led to major improvements in educational levels and financial inclusion. These improvements alleviate poverty and enhance both country's social wellbeing and MNBs’ legitimacy, leading to mutual prosperity.     

Internationalization of multinational banks: a study of foreign direct investment in seven Latin American countries

The article attempts to explore and contrast the different factors that influence the foreign direct investment (FDI) decisions of multinational banks. Employing eclectic theory, an estimation model with panel data from seven Latin American countries is set to test the proposed hypotheses. The results highlight an increase in foreign assets, removal of banking restriction, banking concentration, and capital cost differential in the local banking system as determinants of specific location advantages for attracting banking FDI. Other factors such as cultural proximity and crisis also have a significant impact on banking FDI. Discussions and implications are debated before conclusions are drawn for a future research agenda.     

Towards the Latin American Regiocentric Corporation

Abstract

Globalization and regionalism are emerging with force in Latin America and a new breed of Latin American corporations is making its mark in response to this new reality. These corporations are exploiting technology, low costs, and their in-depth understanding of the region's intricate cultural fabric to compete with global firms and become regional players in niches neglected by these powerful rivals. Using the integration-responsiveness framework, this paper describes the evolution and characteristics of regional strategies in selected Latin American companies and speculates on the potential reversal of these strategies as Latin American economies attempt to insulate themselves from the recent international financial crisis.     

Aid policy of the industrial countries

Time and again, and in the more recent past during the UNCTAD Ill-Conference, the less developed countries (LDCs) have found fault with the industrial countries’ declining contribution towards the economic development of the Third World. The question is now whether the future will bring a change of this tendency which has shown itself for a number of years.     

Agricultural policy in developing countries

Development failures are less the result of “natural” short-comings, but are caused instead by false conceptions and by the misapplication of experience from highly-developed economic systems to countries in the initial development stage. The following article points out the pit-falls and discusses some alternative strategies.     

EC policy and developing countries

The EC’s Common Agricultural Policy (CAP) tends to restrict imports of farm produce to that part of demand which is not met by domestic production. The author analyses nature and extent of the problems arising therefrom for the LDCs that are heavily dependent on exports of agricultural goods.     

Trade policy in developing countries

Development institutions are currently revising their traditional positions on the question of adequate trade policies for developing countries. Against this background the following article takes stock of the degree to which developing countries have become integrated into the world economy and considers the opportunities and risks which the integration process presents. Problems confronting national policies in less successful developing countries are then outlined which make further, efficient integration of these countries into the world economy more difficult. Finally, policies are identified which could ease further integration.     

Financial policy in developing countries

The present financial policies of the developing countries are hardly likely to create favourable conditions for economic growth. A change can only be brought about if the financing of development projects and the imports of consumer goods can be successfully integrated in an overall plan for economic growth and the generation of new sources of revenue for the state.     

Consumer safety policy in the EFTA countries

In this article, the author briefly outlines the present consumer safety laws in EFTA member countries. It seems that the EFTA countries are well prepared to adapt to the future EC Directive on Product Safety. Further, the author suggests that in the future, information on product safety matters should be diffused in a West European Safety Information Exchange System.     

Latin American firms competing in the global economy

As part of a cooperative effort between the Journal of Business Research (JBR) and the Business Association of Latin American Studies (BALAS), this special issue brings updated research on the Latin American business environment. Out of 226 papers submitted to the BALAS 2012 conference, which was hosted by the Pontifical Catholic University of Rio de Janeiro (PUC-Rio), 22 were pre-selected to run for publication in this special issue — and only 14 actually were accepted after the demanding three rounds of a double blind review process that was run after the conference. This introduction to the special issue of the JBR on the BALAS 2012 conference brings an overview of the changes that have taken place in the business environment of Latin America, the evolution of the internationalization behavior of Latin American firms and the changes in their strengths to compete both domestically and abroad.     

Latin American Universities and Technology Commercialization

A small but significant percentage of the discoveries made by university researchers have commercial value, especially in fields such as the biomedical sciences, material science, and information technology. Early stage technologies emerging from university labs represent an important source of innovation for technology firms in the United States (US), especially those located in close proximity to elite universities in regions characterized by high levels of entrepreneurial dynamism. Based in part on the U.S. demonstration effect, policymakers in the developing world increasingly view universities as institutions capable of accelerating technology-based economic development. In this article we examine the efforts of elite universities in Chile, Mexico, and Brazil to transfer faculty inventions to the marketplace. On average these institutions have upgraded commercialization infrastructure since the mid-2000s and a select few are beginning to generate significant licensing revenue and viable spinoffs. We conclude with policy recommendations and suggestions for future research.     

Chinese Investment in Latin American Resources

China's need for vast amounts of minerals to sustain its high economic growth rate has increasingly turned Chinese investors towards Latin America.This demand has propelled China into third place among Latin American investors,directing over $15 billion (about 9     

Trade policy and Spanish specialization, 1978-93

This article uses a simplified general equilibrium model to analyse the short and long run incidence of trade policy in Spain between 1978 and 1993. The incidence model is usually specified in an inter-industry framework, with increasing tariffs and either increasing or non-existent export subsidies. However, in this paper it is applied in a period of rapid liberalisation and with an intra-industry pattern of trade. The results, based on seasonal integration and cointegration techniques, show that, in the long run, the prices of exportables relative to non-tradables followed the fall in prices of import-competing goods. Hence, the effect of the liberalization process that took place in Spain during this period was precisely the intended one - that is to say, the enhancement of the competitiveness of the tradable sector as a whole. The slow reaction on the part of suppliers in shifting production from importables to exportables resulted in a certain gap between relative prices of tradables only in the short-run. In the end, the effect of trade policy was to create incentives for the reallocation of resources to the production of non-tradables.     

Regional policy in Third World countries

A great deal would suggest that the process of urbanisation in developing countries leads to both negative allocation effects and to an increase in income inequality between urban and rural districts. Regional policy measures almed at improving the lot of rural areas would seem called for. Which concepts exist on this issue and how are they to be rated?     

The case for debt-forgiveness for Latin America and the Caribbean countries

Resource transfer to Latin America and the Caribbean was negative throughouthe eighties. Debt-forgiveness would benefit not only the debtor countries, however. Lending countries and institutions would also stand to gain.     

Comparing employment interviews in Latin America with other countries

This study compares job interviews (n = 11,667) in Mexico with those in the following countries: Belgium, Russia, Taiwan, and the U.S. The findings support our hypotheses, which are based on a meta-cultural framework. The results reveal that in Mexico and Taiwan women are less likely to conduct interviews. In addition, interviewers asked different questions. Outside the U.S., interviewers asked applicants about their family, marital status, and children. In Russia and Taiwan, they asked about applicants' reasons for quitting their last job. In Belgium, Russia, and Taiwan, they asked about applicants' wage and salary expectations. In Belgium and Russia, they less often asked about applicants' values, opinions, and beliefs. This study suggests that in some countries employment interviews are more than a test of job-related knowledge, skills, and abilities. This report provides a taxonomy that is useful for comparing interview questions in Latin American and other countries as well as directions for future research.