Economic Performance in Latin America and the Caribbean : A Microeconomic Perspective, Volume 1. Main Findings

Economic Performance in Latin America and the Caribbean : A Microeconomic Perspective, Volume 1. Main Findings

Important findings of recent studies based on a macroeconomic perspective include the need to take actions aimed at further increasing the region's integration into the global economy while at the same time deepening Latin America's relat...

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Bibliographic Details
Main Author:	World Bank
Format:	General Economy, Macroeconomics and Growth Study
Language:	English
Published:	Washington, DC 2012
Subjects:	ACCESS TO CREDIT AGGREGATE INDICATORS AUDITS AVERAGE GROWTH AVERAGE PRODUCTIVITY AVERAGE WAGE AVERAGE WAGES BANK CREDIT BANKRUPTCY BENCHMARK BENCHMARKS BILATERAL TRADE BUREAUCRACY BUSINESS CYCLE BUSINESS ENVIRONMENT BUSINESS ENVIRONMENT SURVEYS BUSINESS PLAN CALCULATION CALCULATIONS CAPITAL FORMATION CAPITAL STOCK CHECKING ACCOUNT COLLATERAL COMMODITIES COMMODITY COMMODITY PRICES COMMUNICATION TECHNOLOGIES COMPETITIVENESS CONTRIBUTION CONTRIBUTIONS CORPORATE GOVERNANCE CORPORATE TAXES CORRUPT PRACTICES CORRUPTION CORRUPTION LEVELS CREDIBILITY CREDIT PRODUCTS CREDITOR CREDITOR RIGHTS CRIME CURRENT ACCOUNT CURRENT ACCOUNT BALANCE DEVELOPING COUNTRIES DEVELOPMENT STRATEGIES DIMINISHING RETURNS DIRECT COSTS DISPUTE RESOLUTION DOMESTIC CREDIT DOMESTIC MARKETS EARNINGS ECONOMETRIC MODELS ECONOMIC ACTIVITY ECONOMIC COSTS ECONOMIC GROWTH ECONOMIC MANAGEMENT ECONOMIC PERFORMANCE ELASTICITY ENTERPRISE SURVEYS ENTRY POINT EXPENDITURES EXPORT SECTOR EXPORTER EXPORTERS EXPORTS FINANCE CORPORATION FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INCENTIVES FINANCIAL INSTITUTION FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN CAPITAL FOREIGN OWNERSHIP GDP GLOBAL ECONOMIC PROSPECTS GLOBAL ECONOMY GLOBALIZATION GOOD GOVERNANCE GOVERNMENT ACTIONS GOVERNMENT INTERVENTION GROWTH POTENTIAL GROWTH RATE GROWTH RATES HUMAN CAPITAL HUMAN RESOURCE INCOME INDIRECT COSTS INDIVIDUAL FIRMS INSTITUTIONAL QUALITY INSTRUMENT INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT CLIMATE REFORMS INVESTMENT RATES JUDICIAL SYSTEM LABOR FORCE LARGE FIRMS LATIN AMERICAN LEGAL SYSTEM LEGAL SYSTEM EFFICIENCY LEGAL SYSTEMS LIABILITY LIMITED LIABILITY LIMITED LIABILITY COMPANY LLC LOAN LOAN MATURITY LOAN SIZE M2 MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MARKET FAILURES MEDIUM ENTERPRISES MIDDLE EAST MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY NATURAL RESOURCE NATURAL RESOURCES NET EXPORTS NEW PRODUCTS NORTH AFRICA OUTPUT PER CAPITA INCOME POOR INVESTMENT POSITIVE EFFECTS POVERTY ALLEVIATION POVERTY RATE POVERTY RATES POWER OUTAGES PRIVATE SECTOR GOVERNANCE PROBABILITY PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC CONTRACTS PUBLIC DEBT PUBLIC OFFICIALS PUBLIC SPENDING REGULATORY BURDEN REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RENTS RESERVES RETURN RETURNS REVERSE CAUSALITY SALES SHAREHOLDER SKILLED WORKERS SMALLER FIRMS SUB-SAHARAN AFRICA SUBJECTIVE ASSESSMENTS TARIFF BARRIERS TAX TAX DEDUCTIONS TAX RATES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRAINING PROGRAMS TRANSACTION TRANSACTION COSTS TRANSPARENCY VALUE ADDED WAGE WAGES WORK FORCE WORLD DEVELOPMENT INDICATORS WORTH
Online Access:	http://documents.worldbank.org/curated/en/2007/06/8419345/economic-performance-latin-america-caribbean-microeconomic-perspective-vol-1-2-main-findings http://hdl.handle.net/10986/7851

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Summary:	Important findings of recent studies based on a macroeconomic perspective include the need to take actions aimed at further increasing the region's integration into the global economy while at the same time deepening Latin America's relatively shallow financial markets. This study complements that body of knowledge by taking an alternative microeconomic, firm-level approach to explain productivity and economic performance. In particular, instead of the usual cross country econometric methodologies used to uncover the determinants of per capita GDP growth, this study focuses on the analysis of the investment climate determinants of productivity and wages at the firm level. Six main findings emerge from this analysis: first, the governance agenda, encompassing the strengthening of the rule of the law and the improvement of institutions and regulatory frameworks, emerges as a key policy priority for improving firm performance in Latin America. Second, expanding access to credit also appears as a relevant policy priority. Third, innovation, technological development and human capital remain at the core of the agenda of reforms aimed at moving up in the value chain and securing the elusive goal of higher sustained growth. Fourth, the findings of this regional study complement the extensive evidence on the critical impact of infrastructure on growth and poverty. Fifth, the report shows that, after controlling for other factors, firms that export tend to perform better: they are more productive, pay higher wages and are more likely to innovate. And finally, benefits of an improved investment climate are not limited to firms, as their workers benefit significantly as well.