de Ferranti, DavidPerry, Guillermo E.Lederman, DanielMaloney, William E.2013-06-192013-06-1920020-8213-5009-9https://hdl.handle.net/10986/14040The study questions whether, after a decade of remarkable progress in trade reform, Latin America and the Caribbean really integrates into the global market, offering a promising rapid growth, and good jobs for its workers. For despite the incidence of the loosely called "knowledge economy", the concern prevails that most countries' rich natural resources, still are the determining factor for exports. Policy recommendations include fostering openness to trade, market access, and foreign direct investment flows, in addition to building human capital, institutions, and public infrastructure, without disregarding the natural advantages. To this end, policymakers should aim at developing educational systems that provide quality education, focused on lifelong learning, and training activities to build human capital. Emphasis should follow on research and development (R&D) incentives, and innovations systems, arguing that countries should experiment with taxation incentives, and subsidies to promote both private, and public investments in R&D, (dependent on the institutional capacity of governments to enforce tax laws, and monitor the quality of investments). Moreover, evidence in this report, suggests that information, and communications technology (ICT) can reduce coordination costs, enabling an effective industrialization, and market access.en-USCC BY 3.0 IGOAPPARELBILATERAL TRADECOMMERCIAL POLICYCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCONCENTRATION INDEXESECONOMIC POLICYECONOMICSECONOMIES OF SCALEELECTRONICS INDUSTRYEMPIRICAL EVIDENCEEMPIRICAL STUDIESEQUILIBRIUMEXPLOITATIONEXPORT DIVERSIFICATIONEXPORT PROCESSINGEXPORT PROCESSING ZONEEXPORTSEXTERNAL TARIFFFACTOR ENDOWMENTSFISHINGFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN TRADEFORESTRYFREE TRADEFREE TRADE AGREEMENTSGDPGDP PER CAPITAGLOBAL MARKETSGROSS DOMESTIC PRODUCTHUMAN CAPITALIMPORTSINCOMEINCOME DISTRIBUTIONINDUSTRIAL PRODUCTIVITYINDUSTRIAL PRODUCTSINDUSTRIALIZATIONINDUSTRY TRADEINFORMAL SECTORINFORMAL WORKERSINTERNATIONAL INVESTORSINTERNATIONAL TRADEINVESTMENT FLOWSKNOWLEDGE ECONOMYLABOR FORCELABOR PRODUCTIVITYLABOR SUPPLYLOCATIONAL ADVANTAGESMANUFACTURING PRODUCTIVITYMARKET ACCESSMINESMINIMUM WAGESNATURAL RESOURCESNET EXPORTSNONGOVERNMENTAL ORGANIZATIONSOPENNESSPATTERNS OF TRADEPRICE CHANGESPRODUCTION PROCESSESPROTECTIONISMPUBLIC EXPENDITURESRATES OF PROTECTIONREAL EXCHANGE RATEREGIONAL INTEGRATIONSPECIALIZATIONTARIFF PREFERENCESTAX INCENTIVESTECHNOLOGICAL PROGRESSTELECOMMUNICATIONSTERMS OF TRADETOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTOURISMTRADE AGREEMENTTRADE CLASSIFICATIONTRADE DIVERSIONTRADE FLOWSTRADE LIBERALIZATIONTRADE POLICYTRADE REFORMTRADE STRUCTURETRADE THEORIESTRADE ZONESTRANSPORT COSTSUNEMPLOYMENTUNEMPLOYMENT RATESUNSKILLED WORKERSVALUE ADDEDWAGE INEQUALITYWAGESWEALTHWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/0-8213-5009-9