Should Latin America Fear China?

Eduardo Lora

No 4419, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: (PDF file in English available WP-531) This paper compares growth conditions in China and Latin America to assess fears that China will displace Latin America in the coming decades. China`s strengths include the size of the economy, macroeconomic stability, abundant low-cost labor, the rapid expansion of physical infrastructure, and the ability to innovate. China`s weaknesses, stemming from insufficient separation between market and state, include poor corporate governance, a fragile financial system and misallocation of savings. Both regions share important weaknesses: the rule of law is weak, corruption endemic, and education is poor and very poorly distributed.

Date: 2005-05
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Should Latin America Fear China? (2005)
Working Paper: Should Latin America Fear China? (2005)
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