Latin America’s Trade and Growth Patterns, the China Factor, and Prebisch’s Nightmare

Abstract

This paper examines, with the help of the available literature on North-South models, the paradoxical economic performances within Latin America and the role of China’s phenomenal recent growth in it, which turn the Prebisch-Singer thesis upside down: the terms of trade are moving in favor of the primary goods exports of South America which are outperforming in terms of growth the exporters of manufactures of Northern Latin America.