Fear of China : is there a future for manufacturing in Latin America ? (Occasional Paper ITD = Documento de Divulgación ITD ; n. 36)

Fear of China : is there a future for manufacturing in Latin America ? (Occasional Paper ITD = Documento de Divulgación ITD ; n. 36)

Author: Mauricio Mesquita Moreira

Publisher: BID-INTAL

Published: 2006

Total Pages: 48

ISBN-13: 9507382372

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China's emergence has raised pointed questions about the future of manufacturing in Latin America. This paper looks at this challenge and its implications. It begins by asking: Does manufacturing still matter for Latin America? It argues that the region cannot afford to turn its back to a well-proven road to development. It then moves on to show that endowments, productivity, scale and the government's role, all work together to make China a formidable competitor. The importance of this challenge is confirmed by an analysis of the trade data, which suggests a small impact so far, but a disquieting trend.