Understanding Measuring Tradable Sectors in Economics

Latin American countries did not use foreign borrowing to develop a resource base in tradable goods, especially export industries.

Debt-export ratios and debt service to export ratios diverged markedly due to faster export growth in Asia.

Overvalued exchange rates in Latin America encouraged capital flight.

<p>By 1980, the export-GDP ratios in Asia were far higher than those in Latin America.</p> Signup and view all the answers

<p>Foreign borrowing often went to finance the private sector's accumulation of foreign assets.</p> Signup and view all the answers

<p>Understanding the political economy of export promotion is essential to comprehend the continuing paralysis of Latin American economies.</p> Signup and view all the answers

<p>0.5 (px + pm)</p> Signup and view all the answers

<p>i - p'</p> Signup and view all the answers

<p>Some oil-exporting countries</p> Signup and view all the answers

<p>Due to large increases in nominal interest rates combined with falling export prices</p> Signup and view all the answers

<p>Debt-GDP ratio</p> Signup and view all the answers

<p>A comprehensive accounting of the country's foreign assets and debts</p> Signup and view all the answers

<p>Trade data only show actual trade extent, not value of production; lack of sector-level data hinders evaluation of returns on investments.</p> Signup and view all the answers

<p>By measuring the extent of actual exports relative to total income.</p> Signup and view all the answers

<p>Rapid growth compared to a fairly flat pattern in Latin America.</p> Signup and view all the answers

<p>Importables, exportables, and nontradables</p> Signup and view all the answers

<p>Korea went from 9% to a higher share, while Indonesia went from 5% to a higher share.</p> Signup and view all the answers

<p>By dividing production and employment into agriculture, industry, and services.</p> Signup and view all the answers

<p>The two-sector model oversimplifies by only focusing on exportable and importable sectors, while the three-sector framework considers nontradables as well.</p> Signup and view all the answers

<p>To understand the differences in the size of the nontraded goods sector and the impact of trade policies on resource allocation.</p> Signup and view all the answers

<p>By associating tradables with agriculture and industry, and nontradables with services.</p> Signup and view all the answers

<p>Protectionist policies can harm nontradables and benefit both the importable and exportable sectors.</p> Signup and view all the answers

<p>Protectionist policies can simultaneously support export-promotion while harming sectors like nontradables.</p> Signup and view all the answers

<p>Trade policies, exchange rate management, and aggregate demand management influence the allocation of resources.</p> Signup and view all the answers

<p>Rural strength</p> Signup and view all the answers

<p>Colombia</p> Signup and view all the answers

<p>Intellectual and ideological elements</p> Signup and view all the answers

<p>Dependency theory and opposition to U.S. involvement in local economies</p> Signup and view all the answers

<p>The Prebisch hypothesis</p> Signup and view all the answers

<p>Asia</p> Signup and view all the answers