EconPapers    
Economics at your fingertips  
 

Peripherality, Inequality, and Economic Development in Latin American Countries

Yoshimichi Murakami and Nobuaki Hamaguchi

No DP2017-08, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: In this study, we analyse new peripheral features of Latin American Countries (LACs), conceptualized by neo-structuralism and the triangular relation between peripherality, inequality, and economic development. We analyse the following as peripheral features: primary commodity dependence, low level of technological progress, poor formation of global value chains (GVCs). On the basis of this triangular relation, we empirically analyse how and to what extent peripherality and inequality affect the income levels in LACs during 1995 to 2014. We find that LACs exhibit a virtuous cycle between a decrease in inequality and an increase in income levels. We also find that although primary commodity dependence, technological progress, and GVC integration directly increase the income levels, they also indirectly decrease the income levels through increasing inequality. Additionally, the increasing effects on inequality is mitigated if a country is integrated into GVCs with higher levels of technological progress.

Keywords: Primary commodity dependence; Technological progress; Global value chains (GVCs); Neo-structuralism (search for similar items in EconPapers)
JEL-codes: F63 O47 O54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pke
Date: 2017-03
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2017-08.pdf First version, 2017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:dp2017-08

Access Statistics for this paper

More papers in Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN. Contact information at EDIRC.
Bibliographic data for series maintained by Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University ().

 
Page updated 2019-02-28
Handle: RePEc:kob:dpaper:dp2017-08