Latin American Countries Research Articles

Analyzing Fiscal Sustainability in Latin American Countries: A Time–Frequency Perspective

This study examines fiscal sustainability in Latin American countries from a unique time–frequency perspective, focusing on Brazil, Chile, Colombia, Peru, and Mexico from 1997 to 2022. Using wavelet coherence analysis, it uncovers dynamic relationships between government revenue and expenditure over different time horizons, revealing varying causality patterns across countries and periods. The findings underscore the importance of balanced fiscal planning and resource allocation to ensure fiscal sustainability and support economic growth. This research contributes to a deeper understanding of Latin America’s economic landscape and provides valuable insights for policymakers, economists, and stakeholders concerned with the region’s economic stability and development.

Biographies of uncertainty regulation in the labor market and extension of working life in Chile

Abstract Despite lacking policies targeting the extension of working life, Chile is the Latin American country that has exhibited the largest increase in the labor force participation rate of people aged 65+ in the last two decades. In this research, following an analytical framework on regulation of endogenous uncertainty and relying on rich qualitative data (life story interviews of 90 older workers aged 60–86, across 21 cities and 6 regions), we approached the complexity of extended working lives in Chile by addressing an unexplored dimension. Specifically, we explore individuals’ agency over their employment trajectories (i.e., both in adulthood and old age) among those who remained active in the labor market after the legal retirement age. Our findings provide strong evidence that extended working lives not only result from precarious social conditions, but are also shaped by complex processes involving both expansive and adaptive individual agency in which people engaged throughout their life course. Therefore, the high exogenous uncertainty in the labor market should not merely be interpreted from the perspective of “precarity,” but also as a scenario that encouraged individuals to behave in a way that led them to engage in the labor force across their lives in accordance with their preferred level of endogenous uncertainty.

Towards effective women’s movements against violence: the role of organizational conditions in promoting leadership capital

ABSTRACT Over recent years, increasing violence in Latin American countries has led women’s movements against violence to face challenging circumstances while advancing their goals. Attention has recently turned to the internal structures of these movements, particularly the aspect of leadership. While prior research recognizes a preference for shared leadership among women’s movements, where responsibilities are commonly distributed among many members, it also points to its potential for conflict, which can impede collaborative action. However, there is still a limited understanding of the organizational conditions of movement leadership, especially within women’s movements facing adverse contexts that require enhancing their capacities for goal attainment. This study follows the concept of leadership capital, which posits that movement leaders use their skills and knowledge to undertake decision-making that is crucial for the movement’s goals. Conceptually, it explores potential relationships between organizational conditions that might foster elements to enhance leadership capital. Employing inductive research through a cross-case study of two Mexican women’s movements against violence, the Olimpia and the Anti-femicide movements, performed between 2017 and 2021, the study focuses on two main organizational conditions: the presence of a common agenda and effective communication. By comparing these movements, which had varying degrees of success in meeting their legislative objectives, the study reveals how differences in these organizational conditions can potentially relate to promoting leadership capital. This study thus advances the social movement literature by proposing a new framework to study movement leadership.

Scientific Utility of Selected Latin American Global Geoparks: A Literature-Based Case Study

Global geoparks, i.e., the members of the UNESCO Global Geopark (UGGp) network, possess highly valuable geoheritage resources, which can be used for the purposes of not only education and tourism, but also science. Five examples from four Latin American countries (Chile, Ecuador, Mexico, and Peru) were employed to realize the importance of these global geoparks as facilitators of international research. Journal articles devoted to these geoparks were selected with the major bibliographical databases, and the information from them was analyzed quantitatively. Particularly, the numbers of articles published before and after the UGGp membership, paying significant and marginal attention to geoparks, and published by international teams were calculated; the general themes of the articles were outlined. It was established that the total number of publications grew after the UGGp membership of these geoparks, but not steadily. The established dynamics of publishing are unstable and differ between the geoparks. Geoparks of Mexico (Mixteca Alta) and Peru (Colca y Volcanes de Andagua) are notable examples because they started to facilitate international research before the UGGp membership. Many articles consider geoparks only marginally (nonetheless, there are also articles paying significant attention to geoparks, especially in the cases of two Mexican geoparks). The author teams are often not restricted to Latin America. The research themes are rather diverse (geoheritage, geology, ecology, innovations, society, technology), although the majority of the publications are geoheritage-focused. Of special interest is the Colca y Volcanes de Andagua global geopark, which has been considered in the innovation-focused article. Generally, our results indicate a moderate importance of the considered global geoparks to international research activity and the incomplete exploitation of their scientific potential. Two Mexican geoparks (Comarca Minera and Mixteca Alta) seem to be the most successful in the facilitation of international research. Indeed, the scientific utility of global geoparks should be strengthened.

Crude credit: The political economy of natural resource booms and sovereign debt management

Oil, gas, and minerals have notoriously adverse effects on institutional quality. But when global liquidity is high, risk-tolerant investors are more willing to lend to all borrowers, even resource-rich countries with low-quality institutions. Despite the availability of cheaper credit during commodity booms, we argue that countries do not increase current borrowing to mitigate future revenue shortfalls during commodity busts. Instead, they rely on resource windfalls to meet their current financing needs, fearing they would otherwise forfeit national policy discretion to global financial markets. We leverage primary evidence from extensive field research across five Latin American countries to show that national economic officials (i.e. finance ministers and central bank governors) are wary of high indebtedness, after past commodity booms ended in cycles of lofty spending, borrowing, and default. For sovereign borrowers, high bond market indebtedness often reduces government discretion over economic policy, whereas windfalls increase it; all else equal, governments will favor the latter. Using data on 22 Latin American and Caribbean countries from 1996 to 2020, we find that governments issue bonds less frequently, in smaller amounts, as their oil and gas production or GDP share from resource rents increases. These findings make an important contribution to our understanding of how commodity cycles affect global capital markets: sovereign borrowers do not fully leverage commodity booms to expand their fiscal space to finance more spending over time.

Incremental Healthcare Costs of Diabetes Mellitus in a Middle-Income Country Using Administrative Healthcare Data

ObjectivesTo estimate the incremental medical cost of diabetes mellitus using information from administrative databases in Colombia. MethodsWe carried out a retrospective cohort study with administrative health databases from Colombian population affiliated in the contributory health insurance scheme. We used an operative definition to select the cohort with diabetes. Incremental cost and cost ratio of diabetes were estimated using an inverse probability weighting of treatment approach to find the causal effect of having the disease. Weights were calculated by a propensity score method using a Random Forest model. The flexibility of this machine learning algorithm allows to have a better specification and bias reduction. Additionally, we reported incremental costs and cost ratios with confidence intervals using bootstrapping and analyzed costs by age groups and complications associated with diabetes. ResultsThe estimated prevalence of diabetes was 2834 per 100 000 cases, in 2018. The group with diabetes was comprised 634 015 people and the control group 1 524 808. The calculated annual direct medical cost was $860, for which the incremental cost was $493 and the cost ratio 2.34. The incremental annual cost for some type of complication ranges from $1239 to $2043, renal complication being the most expensive. Incremental cost by age groups ranges from $347 to $878, being higher in younger people. ConclusionsAlthough the cost of diabetes in Colombia ranges among the global averages and is similar to other Latin-American countries, a greater incremental cost was found in patients with renal, circulatory, and neurologic complications.

Understanding The Influence Of Shadow Economy And Foreign Direct Investment On Corporate Tax Revenue In Latin America: The Moderating effect Of Corruption Control

Taxation is an essential mechanism that funds government expenditures and underpins the growth and development of any country. This research examines the influence of the shadow economy and foreign direct investment (FDI) on corporate income tax revenue in Latin America, considering the moderating role of corruption control. Using panel data regression analysis, we analyze data from various Latin American countries to explore the complex interactions between these economic factors and tax revenue. Our findings indicate that corruption control has a positive and significant effect on corporate income tax revenue. However, the relationship between the shadow economy and tax revenue changes when moderated by corruption control. Without moderation, the shadow economy positively impacts tax revenue, but in the presence of higher corruption control, it leads to reduced tax revenue. Similarly, while FDI initially shows a positive impact on tax revenue, this effect turns negative when considering corruption control. These findings shed light on the nuanced relationships between economic factors and tax revenue in Latin America, offering valuable insights for policy formulation and future research.

Can public efficiency increase tax morale? Evidence from 18 Latin American countries

Can public efficiency increase tax morale? Evidence from 18 Latin American countries

Trade liberalisation and manufacturing employment in developing countries

The manufacturing sector has played an important role in the structural transformation process in the developing world by providing jobs and income opportunities. Using data from 131 developing countries from 1991 to 2020, we estimate the impact of trade liberalisation on manufacturing employment using panel fixed-effects and instrumental variable regression approaches. We find that trade liberalisation – on average – has harmed manufacturing employment in developing countries. There are considerable differences at the regional level; the impact has been most substantial in sub-Saharan African and Latin American countries. At least in these regions, trade liberalisation has contributed to deindustrialisation. Policies that improve labour productivity in manufacturing will increase the competitiveness of manufacturing firms in these countries in the face of growing trade globalisation.

Factory Asia Meets Factory North America: How Far Does Latin America Get Involved in Machinery Production Networks?

International production networks in machinery industry have formed three large clusters, each of which is in East Asia, North America, and Europe. This paper investigates the recent evolvement of the connection between Factory Asia and Factory North America with highlighting the role of Latin American countries as a mediator. For this purpose, we utilized trade matrices and gravity equations to measure each country’s level of commitment to each bilateral machinery trade after controlling the size of the economies, distance, and others. Our major findings are threefold: first, Mexico is the only Latin American country that plays a connecting role between two Factories. Second, in 2010–2019, the linkage of exports to Mexico from not only China but also other East Asian countries is strengthened particularly in machinery parts and components. Third, export linkage of China with Mexico is further intensified in 2019–2021 particularly in machinery parts and components due to the US-China confrontation, the USMCA, and other factors.

Race Matters: The Long Walk to Decolonizing Development NGOs

Development NGOs have long been under scrutiny for their colonial legacy. Decision-making structures are predominantly white or European. There is little racial equity analysis of staff, programs, and campaigns. Poverty and development are understood as happening “there” in low-income countries. This article analyzes the UK-born NGO ActionAid and its steps toward decolonization. In the 2000s, country directors and international board members diversified beyond British nationals to give more decision-making power to African, Asian, and Latin-American countries. Other advances, yet recent, include an antiracism audit and the start of a large racial equity program. International campaigns are often critical toward the UK’s role in low-income countries or include UK domestic aspects requiring “development” (poverty, climate justice …). The paper shares practical measures to the sometimes-theoretical debate on decolonization and development. It suggests that this process is not in contradiction—but rather promotes—the mandate of addressing poverty where it is most severe worldwide.

Before Biodiversity: Trajectories of National Parks in Latin America (1930s–1980s)

Abstract Almost a century ago, long before biodiversity expressed a scientific value for nature, Latin American countries began establishing national parks. Today, they represent over 6 percent of Latin America’s landmass. By considering national park creation across a broad regional span and six crucial decades, this article explains a mode of state formation focused on caring for nature instead of just exploiting it. It examines how national parks expanded in the region by identifying three consequent trajectories: the use of these conservation units for frontier development in Argentina and as part of a broader project seeking social justice in Mexico; the formation of more haphazard park initiatives in various countries, taking Brazil and Chile as main examples; and the development of ecologically coherent park systems through the cases of Peru and Colombia. The article also addresses the role of science (especially forestry) and international cooperation in shaping national parks. In this manner, it uncovers the paths that faded from view after the idea that parks intend to protect biodiversity took hold and illustrates a rarely acknowledged aspect of state expansion.

Democratization and inclusion: what women’s enfranchisement tells us about the second wave of democracy

ABSTRACT Most Latin American countries enfranchised women during the second wave of democracy. But how did this expansion of participation relate to other dimensions of democracy? In this essay, I use Robert Dahl’s two dimensions of democracy and evaluate what women’s inclusion tells us about democratization during this period. Using 14 countries as base for this analysis, I make three central claims: First, I present data on moments of expansion of inclusion and increased competitiveness and whether they coincided, confirming the late 1940s as the most significant period of democratization as both dimensions often advanced together. Second, I identify sequences of democratization based on whether contestation came before, at the same time, or after the expansion of participation to women and the characteristics of each of these sequences. Based on these sequences, I identify a revolutionary path, a democratic path, and an authoritarian path to women’s suffrage. Finally, using methodological notions of the trivialness and importance of necessary conditions, I conceptualize the dimensions of democratization and argue that the relative importance of inclusiveness has varied over time.

Digital health in Latin America: current legislation and ethical aspectsSaúde digital na América Latina: legislação atual e aspectos éticos

Describe the current legislation on electronic medical records (EMR) and telehealth in Latin American countries and analyze the treatment of confidentiality and professional secrecy. Between March and September 2022, a survey of the regulations in force in 21 Latin American countries was conducted at two levels: the existence of legislation on EMR and telehealth, and the treatment of confidentiality and professional secrecy in EMR and telehealth. A data extraction form was prepared for each country. Data were collected from official on-line sources. The information was analyzed qualitatively and synthesized in tables when possible. The use of EMR is legally regulated in 16 countries. Nineteen countries have legislation on telehealth. All the countries analyzed safeguard confidentiality and professional secrecy through regulations. However, confidentiality and professional secrecy are mentioned in 11 countries in the context of telehealth, and in only nine countries in the context of EMR. Since the start of this century, Latin America has made progress in the legislation of digital tools for health care, such as EMR and telehealth. There is also interest in ethical issues related to the use of EMR and telehealth, particularly confidentiality and professional secrecy, aspects that should be strengthened in digital health.

China-Mexico Economic Relationship in the Context of China’s Penetration in Latin America

China’s relationship with Latin America countries experienced a process of significant expansion over the past two decades. Even though Latin America was not considered as part of the BRI when it was first established, China designed its economic strategy toward the region by emphasizing investment, financial and industrial capacity cooperation, besides trade. Afterwards, China invited Latin American countries to participate in the BRI at the China–Community of Latin American and Caribbean States (CELAC) Ministerial Forum in Santiago in January 2018. Twenty-one Latin American and Caribbean (LAC) countries have signed up to the BRI. However, there are few LAC countries that have not done so, among them the region’s largest economies such as Brazil, Mexico and Colombia, although Brazil is with full AIIB membership. This paper focuses on the specific economic relations between China and Mexico, as far as Mexico is the less involved LA country into the BRI, and Mexico’s position toward China is more aligned with that of its North American partners than to the Latin American countries. This article analyzes the specific situation of Mexico, characterized by its deep integration and dependency on the US market and examines the current economic relations of China and Mexico, considering the impact of the United States–Mexico–Canada Agreement on the bilateral economic relations. The structure of bilateral trade between Mexico and China is also examined, using the Grubel-Lloyd Index (GLI).

The Impact of China on the Trade-Promoting Effects of PTAs: The Case of Korea and Japan’s PTAs with Latin American Countries

The pursuit of Preferential Trade Agreements (PTAs) by numerous countries, aimed at promoting trade among member nations, is widely acknowledged. Nonetheless, policymakers often voice concerns regarding the potentially short-lived nature of PTAs’ trade-promoting effects. In light of this concern, we present empirical evidence that substantiates the transient nature of the trade-enhancing impacts associated with PTAs. We identify the expanding economic influence of China in the global trade sphere as a primary driver for this trend. These findings are reinforced by a compelling illustration within the context of the PTAs involving Korea and Japan with Latin American countries. Our case study suggests that the attenuation of the export-promoting effects of Korea and Japan’s PTAs with their Latin American counterparts can be attributed to the penetration of Chinese goods, the sustained reduction of Most Favored Nation (MFN) tariffs, and the proliferation of comprehensive PTAs within regional contexts.

Effects of Public Spending on Economic Growth: An empirical approach in Latin American countries. Period 2006 – 2019

The objective of this research is to empirically examine the influence of gross capital formation (GFK), public spending on education, spending on research and development (R&D), the number of companies and tax collection, in economic growth, evaluating these variables in the economy of twelve Latin American countries in the periods 2006 to 2019. For this, static panel models (fixed effects and random effects) and dynamic panel (Generalized Method of Analysis) were used as econometric methodology. Moments – GMM), in order to establish the best model that presents the estimators, where the two-step GMM system is more consistent and significant. The results found that gross capital formation, spending on education and taxes significantly influence economic growth, while spending on R&D and the number of companies negatively influence economic growth. Coming to the conclusion that spending on education generates growth in the economies of Latin American countries, this is due to lagging economic growth and tax collection, but there is a lack of information on why spending on R&D, taxes, company numbers, generates a negative impact, which is why studies that evaluate factors that influence these variables are recommended.

Incentivos fiscales para la conservación de la biodiversidad en el contexto latinoamericano

Tax incentives are a key tool for biodiversity conservation in Latin America, promoting participation in environmental protection. The objective of this study is to analyze tax incentives in the region and their impact on conservation. A literature review of studies and legislation in Latin American countries was carried out. The results show that tax incentives promote investments in sustainable projects and contribute to sustainable economic development. However, their implementation faces challenges such as the need to balance tax collection with conservation objectives. In conclusion, tax incentives are vital for biodiversity conservation, however, continuous evaluation is required to ensure their effectiveness and adaptability to local needs.

How Important are Sino-Latin American Trade for Economic Growth? A Trade in Value-Added Perspective

Sino-Latin American trade have increased substantially for decades. However, the increasing trade imbalances between China and several Latin American countries have yielded growing trade frictions. In this paper, we re-calculate the bilateral trade balance using the value-added content in trade and measure the contribution of Sino-Latin American trade to economic growth. The results show that gross trade statistics seriously overestimate the real bilateral trade imbalance, and China’s trade surplus with Mexico decreased by over 50%. The composition of Sino-Latin American trade suggests that most Latin American economies are complementary with Chinese economy. The South-South trade has been increasingly important for both China’s and Latin America’s economic development. We foresee an optimistic future of relations and continuously increasing trade between China and Latin America. Meanwhile, more efforts should be made to settle trade frictions and intensify Sino-Latin American relations.

Income and money donation in middle‐income countries: Evidence from Brazil

AbstractIncome plays a crucial role in shaping pro‐social behavior, particularly in the context of charitable giving. However, existing literature reveals mixed findings when dealing with the nuances in this relationship. This study aims to evaluate the main hypotheses concerning the influence of income on charitable giving, drawing on data from a 2021 national survey with 2099 respondents in Brazil. This study contributes with new evidence to the topic within the context of a middle‐income Latin American country, an aspect often overlooked in previous studies. Our analysis focuses on how an individual's household income influences three key aspects: the likelihood of giving, the amount given, and the proportion of household income donated. The findings indicate that individuals from higher‐income households donate larger sums of money but the same proportion of income as other income households. Household income does not significantly affect the likelihood of donating or the proportion of income donated.