This paper reports on a statistical search for evidence of convergence between South America, as a peripheral world region, and the core region of the global economy (alternatively defined as the United States and the United States with Western Europe) in the post-Bretton Woods period, generally, and since 1990, in particular. We also sought to determine whether globalizing flows enhanced or diminished any impulses toward convergence (or divergence). The paper does find evidence that South America converged (or, at least, did not diverge) in real purchasing power parity income to the core region of the world (when defined as the United States and Western Europe combined) in the period 1990–2008. However, a major driver of that convergence was the price of primary commodities—suggesting that the region’s peripheral status remains largely intact, and that such convergence is transient. There is, nevertheless, cause for optimism in the finding that the export of high technology goods also seemed to promote convergence. Thus, the regions ability to move up the chain of exports (into high technology products) offers one avenue for long-term convergence in income to the core region(s) and a prospective end to its peripheral status.
|Keywords:||Globalization, Convergence, South America|
Student, Economics, University of Manitoba, Winnipeg, MB, Canada
Professor, Economics, University of Manitoba, Winnipeg, MB, Canada
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