The Impact of China on Latin America and the Caribbean

Abstract

About IDSThe Institute of Development Studies is one of the world's leading organisations for research, teaching and communications on international development. Founded in 1966, the Institute enjoys an international reputation based on the quality of its work and the rigour with which it applies academic skills to real world challenges. Its purpose is to understand and explain the world, and to try to change it -to influence as well as to inform.IDS hosts five dynamic research programmes, five popular postgraduate courses, and a family of worldclass web-based knowledge services. These three spheres are integrated in a unique combination -as a development knowledge hub, IDS is connected into and is a convenor of networks throughout the world.The Institute is home to approximately 80 researchers, 50 knowledge services staff, 50 support staff and about 150 students at any one time. But the IDS community extends far beyond, encompassing an extensive network of partners, former staff and students across the development community worldwide. Minimum IDS WORKING PAPER 281The Impact of China on Latin America and the Caribbean This publication is copyright, but may be reproduced by any method without fee for teaching or non-profit purposes, but not for resale. Formal permission is required for all such uses, but normally will be granted immediately. For copying in any other circumstances, or for re-use in other publications, or for translation or adaptation, prior written permission must be obtained from the publisher and a fee may be payable. The Impact of China on Latin America and the Caribbean Rhys Jenkins and Enrique Dussel Peters SummaryThe rapid growth of China and its increased integration with the global economy is having both direct and indirect effects on the Latin American and Caribbean region. This report identifies the main channels through which China's growth is affecting the region and undertakes a preliminary analysis of the impacts that it is having on development. The direct effects are the result of the growth of bilateral trade which increased more than five-fold in five years and, on a much more limited scale, the increase in flows of foreign direct investment between China and the region. Indirect effects have arisen from the competition which Latin America faces from Chinese exports to third markets, possible diversion of FDI from the region to China, and the impact of China on the terms of trade between primary commodities and manufactures.The growth of China represents both opportunities and challenges for the Latin American and Caribbean economies and the paper suggests where, in terms of both countries and sectors, these are concentrated. Research on the impacts of China on other developing countries is still at an early stage and there remain a number of key areas where current knowledge is limited and these are identified. Preliminary results are presented to indicate the potential impacts on growth and the balance of payments of the Latin American countries, and the possible implications ...

Do fiscal incentive policies impact the installed capacity of renewable energy? An empirical evidence from Latin American countries

“…The growing of energy consumption, increase the investments in installed capacity consequently. The influence of economic growth of China on the installed capacity of renewable energy in Latin American countries is due to the Chinese demand for primary commodities and direct investments flow that started in the 1990s, and that exerts a positive impact on economic growth of region (Jenkins et al, 2008). Then, the economic growth of China increases the GDP of Latin America region by nearly 0.02 % (Vianna, 2016).…”

Post-crisis China impact on trade integration and manufacturing competitiveness between Argentina and Brazil

“…Lederman et al (2009), consistent with the neo-liberal approach, stressed the possibility of importing cheaper technology intensive products to improve economic efficiency. On the contrary, Jenkins et al (2008), more akin to neo-developmentalism point of view, emphasized the difficulty to maintain a competitive industrial sector not only because of the direct competition with China, but also the "primarization" or "deindustrialization" induced by favorable relative prices of primary and natural resource intensive goods. Due to the complex nature of trade effect, China's influence on Mercosur integration and industrialization is dynamic and is contingent upon trade structure, trade and industrial policies, as well as the state capacity of involved countries, which would evolve over time in response to new challenges imposed by the external environment and unexpected events, such as the 2008 global financial crisis.…”

“…While recognizing the positive effects of commodity exports to China, the pessimists highlighted how China's appetite for raw materials might distort the incentive structure and lure the resources away from the manufacturing sector, causing the "primarization" and "deindustrialization" or manufacturing "hollowing out" in the case of Brazil (Jenkins & Barbosa, 2012;Jenkins, 2014;) and "sojización" 1 in the case of Argentina (López et al, 2010). In addition, this stream of literature also warned of the incapability of domestic producers to compete with China's manufacturing items in their national markets (Moreira, 2007;Jenkins et al, 2008;Gallagher & Porzecansky, 2010).…”

O Brasil, a China e a VI Cúpula do BRICS

“…Uma, muito positiva, tem definido a China como um parceiro comercial que oferece diversas oportunidades em diferentes áreas e identifica benefícios mútuos que ambos os países poderão ter no futuro próximo (SANTISO et al, 2006;ESCUDÉ, 2014). Outra percepção sobre a China, mais negativa, indica ser o Brasil altamente dependente do mercado chinês, sobretudo na medida em que a China se torna mais forte e ganha voz em fóruns políticos e econômicos internacionais (e é reconhecida como um dos principais global players do sistema internacional) e que empresas chinesas passam a competir mais diretamente com as brasileiras na América Latina, América do Norte e África (JENKINS et al, 2008;VADELL, 2011;BECARD;MACEDO, 2014).…”