Search

The industrialization of developing countries has fundamentally transformed work, employment, and labor for millions. Despite the industrialization of most of the developing world, we present evidence that Latin America has experienced stagnating industrial employment in the past few decades. Benefiting from recently available data on industrial employment as a percentage of total employment from 1980 through 2006, we analyze fixed-effects models for 20 Latin American countries. Specifically, we examine three theoretical explanations: productivity/comparative advantage, institutionalism, and dependency/world-systems. Our analyses demonstrate that the prevailing productivity/comparative advantage explanation has limited value. By contrast, we find supportive evidence for a combination of institutional and dependency/world-systems variables. In particular, the stagnating industrial employment share in Latin American countries has been driven by the negative effects of (in order of magnitude) the Mercosur trade agreement, mineral and ore exports (as a percentage of total exports), the duration of the current political regime, military spending (as a percentage of GDP), and inward foreign direct investment flows (as a percentage of GDP). [ABSTRACT FROM PUBLISHER]

Neoliberalism in Latin America. Neoliberalism and globalization had decisive influence in shaping public policies both internal and foreign in Latin America. Less state, trade and market freedoms, social goals subordinated to economic criteria, are part and parcel of the neoliberal utopia. Price stability was erected as the main social objective; import substitution resulted replaced by exports as the main source of growth. The neoliberal net results as applied to Latin America are: less growth, deindustrialization, income concentration and precarious employments. Therefore, countries public policies should try to gain autonomy to use jointly markets and public intervention in a constructive and innovative fashion. [ABSTRACT FROM AUTHOR]