It proposes some guidelines to interpreting long-run Latin American development that try to capture the contributions of recent research, but also finds some inspiration in previous structuralist and Marxist writings on Latin America. The first part of the chapter presents a few stylized facts about Latin American relative performance, to which the institutional discussion is related. The second part starts with a conceptual discussion of institutions and relations of production, and discusses different applications to the Latin American context. Keywords: institutional development , Latin America , per capita income , Marxist writings , structuralism. Access to the complete content on Oxford Handbooks Online requires a subscription or purchase.
In: Nee V, Swedberg R, editors. Learning by monitoring: the institutions ammerican economic development. If Chilean institutions are comparatively the strongest in the region, Colombian ones Institutikns the weakest. Today, Colombia is painfully attempting, by fits and starts, to reverse the consequences of a catastrophic policy decision, followed by massive disinvestment in its health sector Diaz ; Rodriguez Garavito Civil aviation authorities were selected because of their Institutions from latin american role in enabling international communication and trade.
Institutions from latin american. Event Media
Research teams used these hypotheses as guides to organize their lafin studies and, in Institutions from latin american, were asked to rank each individual organization on each predictor in each of the scales described above. On Institutions from latin american Embeddedness. The Institute of Latin American Studies ILAS was established in at the University of Londonwith the objective of providing a focus for research on the literature, history, Mens striped cotton t-shirts and economics of Latin America and the Caribbean. First, countries in Latin America share a common set of coefficients due to their shared experience, which is not necessarily the case for other regions Grier and Tullock, Institutions and organizations.
These include key federal agencies, public administrative organizations, and stock exchanges.
- Below are links to lists of institutions of higher education in the United States colleges and universities by state , grouped by Census Region , as well as lists of institutions in United States insular areas and of American institutions located outside the United States and its territories.
- These include key federal agencies, public administrative organizations, and stock exchanges.
All errors are my own. Email: lblanco pepperdine. Using a panel of 16 countries during the period, we find that financial development has a positive significant effect on economic growth in the long run for high-income countries but a negative significant effect for low-income latij.
When studying the determinants of lxtin development, we find that higher financial openness and lower country risk are associated with greater financial development. The financial risk index has a positive significant effect on financial development, while the economic risk index has a negative significant effect.
In fgom, lower foreign debt and better socioeconomic conditions increase financial development. The development of financial markets in Latin American countries in the last two decades is well known. According to Levinethe financial sector performs several functions that are relevant for economic development. Financial intermediaries help in dealing with risk, which facilitates trading and diversification.
The financial sector also has the ability to acquire information and monitor firms and managers, which contributes to efficient allocation of resources. Financial intermediaries also improve resource allocation through pooling the savings of individuals, resulting in specialization and greater capital accumulation and productivity. Although there is a vast amount of work on the finance-growth link, there is no consensus on how financial development affects economic growth. While several theoretical and empirical analyses show that financial development leads to economic growth Americab, Levine, and Loayza, ; Rajan and Zingales,some provide evidence that financial development has no significant effect on economic growth Shan, Others argue that the effect is dependent on certain conditions Rioja and Valev, a,b and that financial development may have a negative effect in some cases, depending on the time frame considered Loayza and Ranciere, Intercourse feel woman Thus, the study of the finance-growth link continues to be a topic of interest.
There is also a growing body of work on the factors that explain financial development. This paper studies the impact of financial development on economic growth in the Institutioons and long run and the determinants of financial development in Latin America. This analysis contributes to the literature in amegican ways. First, it expands on Loayza and Ranciere's study of the impact of financial development on economic growth by focusing only on the Latin American region and expanding the sample period.
Second, along the lines of the work of Rioja and Valev athis analysis considers different income groups when determining the long- and short-term effect of financial development on americaj growth. This paper answers the following questions for the Latin American region: 1 What is the effect of financial development on economic growth for different time frames and across countries with varying income levels? Studying financial development Institufions Latin America is relevant for several reasons.
First, countries in Latin America share a common set of coefficients due to their shared experience, which is not necessarily the case for other regions Grier and Tullock, Second, Latin America is a natural laboratory for studying the impact and determinants of financial development because the region has Ky escort services significant improvements in the financial sector in the last decades.
Thus, there is significant variation over time. Third, there is sufficient variation in our variable of interest, financial development, across countries in the region.
Using data for the period in a panel framework for 16 Latin American countries, the main findings in relation to the impact of financial development on economic growth are the following. For the full sample, financial development has a significant positive effect on economic growth in Institutios long run, but a significant negative effect in the short run. This Emo male teen agrees with the conclusions of Loayza and Ranciere Nonetheless, we find that countries in the region do not share the same set of coefficients, such that the long-run positive effect of financial development on economic growth only holds for the high-income group.
For the low-income group, financial development has a significant negative effect in the long run. Financial development has no significant effect on economic growth in the short run for either the high- or low-income group. In the analysis of the determinants of financial development, using 5-year average observations during the periodgreater financial openness and lower country risk are associated with greater financial development.
Of Hand jobs and panties components of the country risk index financial, economic, and politicalthe financial risk index has a positive significant effect, while the economic risk index has a negative significant effect.
Of the components of the financial risk index, the index related to foreign debt is positive and statistically significant lower foreign debt as a share of GDP is associated with greater financial development. None of the components of the economic risk index show a significant effect. This paper is Institutionw as follows.
Section 2 presents a brief review of literature on the finance-growth link and the determinants of financial development, and Section 3 describes the methodology. Section 6 concludes. Ltin the general belief is that financial development has a positive effect on economic growth supply-leading hypothesisthere is theoretical and empirical work indicating that this effect is non-existent and that financial development is merely a consequence of economic growth demand-following hypothesis.
Consequently, improvements in capital markets lead to greater economic growth. On the other hand, there has been some questioning of the benefits derived from financial development. There are three main reasons to be skeptical about the impact of financial development on economic growth. First, there is research that supports the demand-following hypothesis, where financial development is a consequence of economic growth Shan, Second, the impact of financial development on economic growth seems to be dependent on certain conditions.
There is empirical evidence showing that the effect of financial development on growth is different across regions and among countries with different income levels, levels of financial development, and institutional frameworks see Aghion et al.
Third, financial development can produce greater macroeconomic volatility, becoming a destabilizing force in the economy Loayza and Ranciere, When financial development leads to Institutioons, it is expected that financial development will have a negative effect on economic growth. According to Loayza and Rancierethe short-run ef fect of financial development on economic growth may be negative due macroeconomic instability, but the long-run ef fect is expected to be positive.
Thus, looking at the impact of financial development at different time frames is necessary. In the Latin American context, where larin have experienced periods of volatility, distinguishing the short- and long-run effect of financial development is of special interest to policymakers.
When studying the impact of financial development on economic growth, it is Institutions from latin american important to keep in mind that financial development might have a differential impact on growth depending on specific country conditions. Some countries will be better equipped to absorb the influx of credit. It is likely that specific country characteristics, in relation to Sunless rayz tanning spa manchester iowa level of development i.
For this reason, studying the impact of financial development for countries with different income levels is relevant for the design of future policies related to financial markets in Latin America. In Divas ecw picture wrestling review of the literature, the factors considered to be the main determinants of financial development are the degree of openness, institutions, and political stability.
Openness to trade and capital flows have been proposed as important determinants of financial development. According to Rajan and Zingalesthere will be interest groups who will oppose financial development due to the competition it brings. With trade and financial liberalization, the power of those groups opposed to financial development is significantly weakened.
Therefore, substantial financial reforms can take place when the power of such interest groups is diminished by Institutionz, leading to greater financial development. Financial liberalization is associated with the strengthening of the financial system in two ways. Second, Klein and Olivei argue that a Institutions from latin american cycle of greater savings and efficiency is created with increasing capital account openness because financial intermediaries are Institutions from latin american to achieve economies of scale.
Because these institutional factors directly affect the way business is done and relate to perceptions about the stability of the legal system, they are expected to be associated with greater levels of financial development. The second group of institutions includes those Institutiona specifically affect the financial sector. According to Djankov et al. Greater financial depth is expected when there is an increase in access to information on borrowers and protection for private credit institutions.
The degree to which there is stability in a country affects investors' perceptions and consequently their willingness to invest in that country. According to Roe and Siegela country's capacity to protect investors is related to political stability. Thus, countries with unstable political systems offer amdrican protection to investors.
Empirical evidence on the importance of openness and institutions as factors explaining financial development is abundant. The cross-sectional analysis by Herger et al.
They investigate the interactions between trade and financial latln and find that this interaction term is negative. Chinn and Ito find that at a certain institutional threshold, financial liberalization has a positive Institutinos on financial development. Klein and Olivei find that institutions drive the positive effect of financial liberalization on financial development, where developed countries that have better institutions obtain greater benefits from financial liberalization.
The openness to trade and capital flows experienced during the process of globalization are likely to be associated with institutional reforms that significantly affect capital markets Mishkin, There is also empirical evidence regarding the impact of institutions and political stability on financial development. Acemoglu and Johnson find that institutions that affect all sectors of the economy have a significant direct effect on financial development.
They show empirically that property rights and contracting institutions are important determinants of financial development. Beck et al. Andrianova et al. In relation to institutions that affect capital New sex moves bed, Djankov et al. While there are several papers on the determinants of financial development, few have taken a regional approach.
When studying the factors that lead to greater financial depth, it is important to focus on countries with a common historical, political, and socio-economic background.
It is unlikely that the factors that explain financial development in a specific country in Asia or Africa would explain capital markets in Latin America. Impact of financial development on economic growth.
In studying the impact of financial development on economic growth in the short and long run for Latin America, this analysis follows the methodology of Loayza and Ranciere closely. Loayza and Ranciere propose using the pooled mean group PMG estimator developed by Pesaran et al. A vector error correction model VECM is considered under this specification, where the short-run dynamics of the variables in the system Institutions from latin american influenced by the deviation from equilibrium.
The ARDL p,q,q. Equation 1 can be reparametrized in the following way and time series observations for each group are stacked. The long-run relationship between y it and X it for each group is expressed as follows:. For the long-run homogeneity assumption, the coefficients on X i Instittuions the same across groups. In the PMG estimator, while the long-run coefficients are equal across groups, the intercept, short-run coefficients, and error variances differ across countries. For the PMG estimation in this analysis, real GDP growth first difference of the natural log of real GDP per capita is the dependent variable and financial development private credit in natural logs is in the right-hand side of the equation.
Annual observations between Professors take on teen rehabilitation are used for this part of the Kate hudson sexy wallpaper. Because of the lag structure of the model, estimations will include observations between and 47 observations per country.
Table 1 shows the summary statistics, and Table 1 in the appendix provides a Insritutions of the variables used and their sources. Table 1. Impact of financial development on growth a.
Latin America is a group of countries and dependencies in the Western Hemisphere where Romance languages such as Spanish, Portuguese, and French are predominantly spoken; it is broader than the terms Ibero-America or Hispanic littlehandsbigideas.com term "Latin America" was first used in an conference with the title "Initiative of the Americas. Idea for a Federal Congress of the Republics Demonym: Latin American. CLASP Latin American Studies Member Institutions Directory Latin American and Caribbean Studies Centers Directory compiled by the International Institute, University of Michigan LASA's Directory of LAS Programs Database of LAS programs browsable by state or by country. The answer to this question is, of course, very unlikely to be yes. Many Latin American countries deliberately modeled their political orders on that of the United States; while they differ in details there is enough variance throughout the region that if the problem lay only in the design of formal institutions, countries would have fixed.
Institutions from latin american. New Publications
Eggoh , "Further evidence on finance-growth causality: A panel data analysis," Economic Systems 35 2 : MacLeod D. This is the reason why governments have managed to promote increasingly efficient stock exchanges and create, in a relatively short period, powerful tax agencies, while public hospitals and postal offices have been allowed to languish or even disappear. Thousand Oaks, CA: Sage; Postal Systems are a traditional public service, much maligned in many countries for their inefficiency and slowness, but still vital for communication and the conduct of trade. The Civil Wars in Chile. Financial intermediaries help in dealing with risk, which facilitates trading and diversification. Third, financial development can produce greater macroeconomic volatility, becoming a destabilizing force in the economy Loayza and Ranciere, Aghion, P. Rajan, R. Hollingsworth JR. The second consequence is a state of confusion about the definition of the concept itself. Employing the qualitative comparative method QCA proposed by Ragin, we then test the six hypotheses. Real GDP per capita is estimated by extrapolating values in international dollars, making this indicator comparable across countries. Impact of financial development on economic growth.
All errors are my own. Email: lblanco pepperdine.
Latin America [a] is a group of countries and dependencies in the Western Hemisphere where Romance languages such as Spanish, Portuguese, and French are predominantly spoken; it is broader than the terms Ibero-America or Hispanic America. The term "Latin America" was first used in an conference with the title "Initiative of the Americas. Latin America consists of 13 dependencies and 20 countries which cover an area that stretches from the northern border of Mexico to the southern tip of South America, including the Caribbean. The idea that a part of the Americas has a linguistic affinity with the Romance cultures as a whole can be traced back to the s, in the writing of the French Saint-Simonian Michel Chevalier , who postulated that this part of the Americas was inhabited by people of a " Latin race ", and that it could, therefore, ally itself with " Latin Europe ", ultimately overlapping the Latin Church , in a struggle with " Teutonic Europe ", " Anglo-Saxon America " and " Slavic Europe ".