Structural change and labor productivity growth in Latin American manufacturing industries 1970-96

This paper examines recent changes in the pattern of production specializat ion attained by Latin American manufacturing industries. Comparing Argentin a, Brazil, Colombia, Chile and Mexico to the United States, the paper ident ifies "catching up" and "lagging behind" industries during 1970-96. It cons iders the evolution of macro and micro forces that affect whether an indust ry manages to close down the gap with the international technological front ier. Evidence is presented showing that recent structural reforms did not r esult in a major discontinuity with the past. Rather, "path dependency" for ces have acted as a major factor explaining differential performance among industries after recent changes in the global incentive regime. (C) 2000 Pu blished by Elsevier Science Ltd.