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China Matters: China's Economic Impact in Latin America

Published online by Cambridge University Press:  05 September 2022

Kevin P. Gallagher  and
Roberto Porzecanski
Kevin P. Gallagher
Affiliation:
Tufts University
Roberto Porzecanski
Affiliation:
Tufts University
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Abstract

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This paper analyzes two aspects of China's economic relationship with Latin America and the Caribbean (LAC). First, we examine the extent to which China's economic growth is affecting trade and investment flows between China and LAC. Second, we analyze the extent to which the emergence of China as a world exporter affects the ability of LAC countries to compete in world markets both in terms of exports as well as in the capacity to attract foreign investment. For each of these questions, we provide a critical assessment of a new body of work in this area, as well as offer a series of analyses that build on and confirm some of this previous work. Furthermore, we offer implications for policy and future research. We show that there is an emerging consensus regarding China and LAC. With respect to trade and investment flows, China accounts for a significant amount of the boost in LAC exports and foreign investment in recent years, but is exporting more than it imports. In terms of global competitiveness, LAC is not significantly threatened by Chinese exports in global markets, with the exception of Mexico.

Resumo

Resumo

Este artículo analiza dos aspectos de la relación económica entre China y América Latina y el Caribe (LAC). En primer lugar, examinamos en qué medida el crecimiento económico de China está afectando los flujos comerciales y de inversión entre China y LAC. En segundo lugar, analizamos en qué medida el advenimiento de China, como potencia exportadora a nivel mundial, afecta la capacidad de los países de LAC de competir en los mercados mundiales, tanto en términos de exportaciones como en la capacidad de atraer inversión extranjera directa (IED). Para cada una de estas preguntas, ofrecemos una evaluación crítica de los nuevos estudios que se han llevado a cabo sobre el tema. También presentamos una serie de análisis que confirman y profundizan las conclusiones de algunos de estos trabajos. Además, presentamos las consecuencias que creemos se derivan de esta literatura, tanto para la formulación de políticas públicas como para futuras investigaciones en el área. Señalamos que hay un consenso emergente en referencia a China y LAC. Con respecto a flujos comerciales y de inversión, China explica una parte significativa del impulso exportador y de inversión experimentado por LAC en años recientes. Sin embargo, China exporta a LAC más de lo que importa desde LAC. Con respecto a la competitividad a nivel mundial, LAC no se ve significativamente amenazada por las exportaciones de China en los mercados internacionales. La excepción es México.

Type
Research Reports and Notes
Information
Latin American Research Review , Volume 43 , Issue 1 , 2008 , pp. 185 - 200
Copyright
Copyright © 2008 by the University of Texas Press

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