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India: Latin America's Next Big Thing?

Author

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  • Mesquita Moreira, Mauricio
Abstract
In the last decade, the economic performance of Latin America and the Caribbean (LAC) were radically transformed by the emergence of China--a fast growing, immensely populous and resource-scarce economy--which has brought both opportunities and challenges for all countries in the region. While the full impact of China it is still unfolding, the region is already coming to terms with a new “shock” brought about by another fast growing, one-billion-plus-people economy: India. What is behind India’s emergence? What challenges and opportunities does it bring to LAC? Can India replicate the explosive trade LAC has with China? This report deals with these questions. It shows first, that India’s growth story defies any easy characterization. Second, that, yes, there seems to be a large potential for LAC to trade with India and largely for the same reasons that its trade with China has took off: complementarity of their factor endowments. There are, though, major obstacles, mainly in the form of tariffs and transports costs. And third, that even though the competitive challenges brought by India abroad has so far being limited to IT services, the country has the potential to be a major competitor in manufacturing goods.

Suggested Citation

  • Mesquita Moreira, Mauricio, 2010. "India: Latin America's Next Big Thing?," MPRA Paper 34354, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34354
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    References listed on IDEAS

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    Cited by:

    1. Hermann Sebastian Dehnen & Jan H. van Dinther & Norbert Koubek, 2013. "From emerging economies toward the Emerging Triad," Schumpeter Discussion Papers SDP13008, Universitätsbibliothek Wuppertal, University Library.
    2. Surjit Mansingh, 2010. "Assessing Reorientation of India’s Foreign Policy in a Globalized World," International Studies, , vol. 47(2-4), pages 143-161, April.
    3. Kakali Mukhopadhyay & Paul J. Thomassin & Debesh Chakraborty, 2012. "Economic Impact of Freer Trade in Latin America and the Caribbean: A GTAP Analysis," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 147-183, November.

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    More about this item

    Keywords

    Latin America; India; Trade;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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