The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth

In the period 2000-2019, Peru enjoyed sustained GDP growth and a long period of macroeconomic stability; as a result, poverty was reduced markedly in comparison to the 1980s and early 1990s, when the country faced severe recessions and hyperinflation. This positive economic performance coincided wit...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Bibi, Samuele, Valdecantos, Sebastián
Formato: Artículo publishedVersion
Lenguaje:Inglés
Publicado: John Wiley & Sons Ltd 2023
Materias:
Macroeconomía
Estabilidad Económica
Inversiones Extranjeras
Acceso en línea:https://nulan.mdp.edu.ar/id/eprint/4078/
https://nulan.mdp.edu.ar/id/eprint/4078/1/bibi-valdecantos-2023.pdf
Aporte de:
Nulan - Fac.Cs.Económicas (UNMdP) de Universidad Nacional de Mar del Plata (UNMdP)
id I29-R135-4078
record_format dspace
spelling I29-R135-40782024-04-30T13:16:56Z The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth Bibi, Samuele Valdecantos, Sebastián In the period 2000-2019, Peru enjoyed sustained GDP growth and a long period of macroeconomic stability; as a result, poverty was reduced markedly in comparison to the 1980s and early 1990s, when the country faced severe recessions and hyperinflation. This positive economic performance coincided with the implementation of a mainstream macroeconomic framework which, alongside favourable external conditions, allowed for continuous external financing of current account deficits, mainly through foreign direct investment (FDI). Against the background of current debates regarding the resurgence of debt crises and the advocacy of FDI as a way to avoid such crises, this article uses balance of payments and international investment position statistics to assess whether Peru's acquired macroeconomic stability can be deemed sustainable. Drawing on the contributions of the Latin American structuralist school and more recent analyses that have raised concerns, the article shows that Peru's external position has taken on a Ponzi profile, casting doubt on the idea that FDI is a superior way of external financing compared to external debt. It concludes with a discussion of the social and environmental implications of Peru's widely praised macroeconomic framework, highlighting the limits that peripheral economies face when their growth relies excessively on external financing. John Wiley & Sons Ltd 2023-09-24 https://nulan.mdp.edu.ar/id/eprint/4078/ application/pdf eng https://nulan.mdp.edu.ar/id/eprint/4078/1/bibi-valdecantos-2023.pdf Development and Change, 54(5), 1136-1168. ISSN 1467-7660. 10.1111/dech.12793 <https://doi.org/10.1111/dech.12793> Perú info:eu-repo/semantics/altIdentifier/doi/10.1111/dech.12793 info:eu-repo/semantics/article info:ar-repo/semantics/artículo info:eu-repo/semantics/publishedVersion Fil: Bibi, Samuele. Northumbria University Business School, Newcastle; United Kingdom. Fil: Valdecantos, Sebastián. Aalborg University Business School; Denmark. Macroeconomía Estabilidad Económica Inversiones Extranjeras info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by/4.0/deed.es
institution Universidad Nacional de Mar del Plata (UNMdP)
institution_str I-29
repository_str R-135
collection Nulan - Fac.Cs.Económicas (UNMdP)
language Inglés
orig_language_str_mv eng
topic Macroeconomía
Estabilidad Económica
Inversiones Extranjeras
spellingShingle Macroeconomía
Estabilidad Económica
Inversiones Extranjeras
Bibi, Samuele
Valdecantos, Sebastián
The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth
topic_facet Macroeconomía
Estabilidad Económica
Inversiones Extranjeras
description In the period 2000-2019, Peru enjoyed sustained GDP growth and a long period of macroeconomic stability; as a result, poverty was reduced markedly in comparison to the 1980s and early 1990s, when the country faced severe recessions and hyperinflation. This positive economic performance coincided with the implementation of a mainstream macroeconomic framework which, alongside favourable external conditions, allowed for continuous external financing of current account deficits, mainly through foreign direct investment (FDI). Against the background of current debates regarding the resurgence of debt crises and the advocacy of FDI as a way to avoid such crises, this article uses balance of payments and international investment position statistics to assess whether Peru's acquired macroeconomic stability can be deemed sustainable. Drawing on the contributions of the Latin American structuralist school and more recent analyses that have raised concerns, the article shows that Peru's external position has taken on a Ponzi profile, casting doubt on the idea that FDI is a superior way of external financing compared to external debt. It concludes with a discussion of the social and environmental implications of Peru's widely praised macroeconomic framework, highlighting the limits that peripheral economies face when their growth relies excessively on external financing.
format Artículo
Artículo
publishedVersion
author Bibi, Samuele
Valdecantos, Sebastián
author_facet Bibi, Samuele
Valdecantos, Sebastián
author_sort Bibi, Samuele
title The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth
title_short The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth
title_full The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth
title_fullStr The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth
title_full_unstemmed The price (and costs) of macroeconomic stability in Peru: Some lessons on the implications of FDI-driven growth
title_sort price (and costs) of macroeconomic stability in peru: some lessons on the implications of fdi-driven growth
publisher John Wiley & Sons Ltd
publishDate 2023
url https://nulan.mdp.edu.ar/id/eprint/4078/
https://nulan.mdp.edu.ar/id/eprint/4078/1/bibi-valdecantos-2023.pdf
work_keys_str_mv AT bibisamuele thepriceandcostsofmacroeconomicstabilityinperusomelessonsontheimplicationsoffdidrivengrowth
AT valdecantossebastian thepriceandcostsofmacroeconomicstabilityinperusomelessonsontheimplicationsoffdidrivengrowth
AT bibisamuele priceandcostsofmacroeconomicstabilityinperusomelessonsontheimplicationsoffdidrivengrowth
AT valdecantossebastian priceandcostsofmacroeconomicstabilityinperusomelessonsontheimplicationsoffdidrivengrowth
_version_ 1807948309554266112

Ejemplares similares