TY  - JOUR
AU  - Edwards,Sebastian
TI  - Globalization, Growth and Crises: The View from Latin America
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14034
PY  - 2008
Y2  - May 2008
UR  - http://www.nber.org/papers/w14034
L1  - http://www.nber.org/papers/w14034.pdf
N1  - Author contact info:
Sebastian Edwards
UCLA Anderson Graduate School of Business
110 Westwood Plaza, Suite C508
Box 951481
Los Angeles, CA 90095-1481
Tel: 310/206-6797
Fax: 310/206-5825
E-Mail: sebastian.edwards@anderson.ucla.edu
AB  - In this paper I analyze the role of openness and globalization in Latin America's economic development.  The paper is divided into two distinct part: I first (Sections II through IV) provide an analysis of 60 years of the region's economic history, that go form the launching of the Alliance for Progress by the Kennedy Administration in 1961, to the formulation and implementation of the market-oriented reforms of the Washington Consensus in the 1990s and 2000s.  I conclude that Latin America's history has been characterized by low growth, high inflation and recurrent external crises.  In Section V I deal formally with the costs of crises, and I estimate a number of variance component models of the dynamics of growth. I find that external crises have been more costly in Latin America than in the rest of the world.  I also find that the cost of external crises has been inversely related to the degree of openness.
ER  -