Lucas Chang Carvalho Santana
Master's – Reforms and growth: an analysis of Latin America trade opening in the 1990s
Advisor: Prof. Dr. Mauro Rodrigues Junior
Comission: Profs. Drs. Márcio Issao Nakane, Pedro Cavalcanti Gomes Ferreira and Tiago Vanderlei de Vasconcelos Cavalcanti
Link YouTube: https://youtu.be/Xr7XLzqlwL0
After the debt crisis, in 1982, the majority of the Latin American countries realized that a development model based on import substitution causes serious macroeconomic problems. In the late 1980s and early 1990s, the countries of this region began a series of economic reforms to adopt pro-market and pro-trade policies. However, the high growth expected with these policies did not occur. In this paper, we will introduce a dynamic general equilibrium model for a better understanding of the relationship between economic growth and international trade. The trade regime is formulated in a manner similar to the one observed in Latin America during the 1990s, that is, a trade opening after a period of protectionist policies. The results obtained in the model are similar to the ones observed in the region after the opening, which are a slow growth of the product per worker, an increase in the total factor productivity, and a reduction in the capital-product ratio.
*Abstract provided by the author