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Empirical
evidence suggests that the good economic
performance of Latin America in the last
6 years (including 2007-8) is increasingly
and strongly correlated either with a
positive terms-of-trade shock, mostly
in South America, or with the increase
in the flow of remittances, particularly
in Central and North America. In other
words, Latin America now exports commodities
and people. The paper shows the possible
limitations of this development strategy.
August 2, 2008.
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