Search IMF Staff Papers


Advanced Search
Journal Description

Editorial Committee

How to Subscribe

Forthcoming Articles

Staff Papers Archive

Copyright Information

Use the free Adobe Acrobat Reader to view pdf files

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile




IMF Staff Papers Logo last updated: January 2002
Volume 48, Number 3
 
Reform and Growth in Latin America:
All Pain, No Gain?

Eduardo Fernández-Arias and Peter Montiel

Full Text of this Article (PDF 101K)

Abstract: This paper addresses the adequacy of post-reform growth in Latin America in the 1990s on the basis of international comparisons as well as historical and other relevant standards. The paper analytically explores and empirically tests a number of hypotheses to explain the perceived dissatisfaction with growth performance in the region. We find that there is no "growth puzzle" in Latin America. Growth has not been higher in the post-reform period not because of a failure of reforms to yield the growth payoff that they should have been expected to do on the basis of international experience, but because of the combination of an unfavorable external environment with the insufficient depth and breadth of reform. We also estimate the long-run growth payoff of macroeconomic reforms, the additional gains that can be achieved by deepening this first generation of reforms, and the potential payoff from broadening the scope of reform into a second generation of reforms encompassing deeper structural and institutional areas. [JEL 011, 019, 042, 054]

2001 International Monetary Fund