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Growth and Adjustment in East Asia and Latin America

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dc.description.abstract This paper compares the experience of growth performance and macroeconomic adjustment between East Asia and Latin America from 1970 to 2000. We find that the difference in growth performance between two regions can largely be attributed to the differences in fundamental growth factors such as investment rate, human resources, fertility, institutional quality, macroeconomic stability and the degree of trade openness. We also discuss the role of quality of education and differences in inequality between the two regions. Balance-of-payments crisis shocks have also contributed significantly to differences in growth performance. Analysis reveals that growth rates tend to fall only temporarily following a balance-of-payments crisis and then rebound to the pre-crisis levels, producing the typical v-type pattern for output in both East Asia and Latin America. However, a balance-of-payments crisis is often associated with a large decline of growth rates and develops into another crisis in the future. Analyzing what determines the output cost of crises we find that international liquidity, financial soundness, real exchange rate depreciation and monetary policy play a critical role in reducing output losses. en
dc.title Growth and Adjustment in East Asia and Latin America en
dc.contributor.author de Gregorio, José
dc.contributor.author Lee, Jong-Wha
dc.date.accessioned 2014-11-11T00:55:49Z
dc.date.available 2014-11-11T00:55:49Z
dc.date.issued 2004-10
dc.identifier.issn 1529-7470
dc.identifier.uri http://hdl.handle.net/123456789/48727
lacea.language.supported en
dc.contributor.other Comments by Daniel Lederman and Nouriel Roubini
dc.language.iso en
dc.publisher Brookings Institution Press
dc.subject Macroeconomic policy
dc.subject Economic growth
dc.subject Trade and finance
dc.subject East Asia
dc.subject Latin America
dc.type Article


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