Latin America

Credit Access in Latin American Enterprises

Credit Access in Latin American Enterprises

A chapter co-authored with Andrea Presbitero on firm access to bank credit in Latin America was published in Firm Innovation and Productivity in Latin America and the Caribbean: The Engine of Economic Development edited by Matteo Grazzi and Carlo Pietrobelli. The paper is also published in Economic Notes.

The complete book can be downloaded here.

Is access to credit a constraint for Latin America enterprises? An empirical analysis with firm-level data

MOFiR WP #101

With Andrea Presbitero

An intense process of deregulation and financial liberalization in Latin America has increased competitive pressures and led to bank restructuring and consolidation. This paper looks at firm access to credit in the region, focusing on the role of credit market structure. Using firm-level data from theWorld Bank Enterprise Survey, we find that access to bank credit is very heterogeneous. On average, smaller and less productive firms are less likely to apply for credit and more likely to be financially constrained.

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Upgrading to Compete: SMEs, Clusters and Value Chains in Latin America

Upgrading to Compete: SMEs, Clusters and Value Chains in Latin America

Published by Harvard University Press

Edited with Carlo Pietrobelli

This books investigates clusters and value chains in Latin America. Globalization imposes new conditions and rules for competitiveness in international markets. It poses the imperative to link up with other actors, both at the local and at the global level, and find new ways to interact and learn from the relationship. Can local markets and clusters represent a powerful alternative to global markets? Do transnational corporations and global buyers play a role and enhance or undermine local firms’ upgrading and learning? What opportunities do clustering and global value chains offer to SMEs in global markets?
Upgrading to Compete shows that both the local and the global dimensions matter at once. Clustering and collaborating with other local firms offers substantial advantages, while also participating in global value chains and interacting with foreign buyers and companies may enhance local firms’ capabilities and access to distant markets. However, what remarkably matters is the form of governance of value chains and clusters that importantly affects the upgrading process of local SMEs.
The book illustrates this with original empirical evidence from several clusters in Latin America. New case studies from Brazil, Chile, Mexico and Nicaragua are supplemented by desk studies on other experiences in the region.

«At a time when there is growing interest in Latin America on active production sector strategies and on the role of SMEs, Pietrobelli and Rabellotti make in this book an essential contribution. “Upgrading to Compete” is full of quality information and insights. I look forward for the introduction of many of the ideas and recommendations of this book into policy action.»
Jose Antonio Ocampo
Under-Secretary-General of the United Nations for Economic and Social Affairs

«This book offers a new way of thinking into fundamental aspects of industrial organization and international trade and exploits original case studies to develop new ideas and stylized facts.»
Michael Piore
David W. Skinner Professor of Political Economy, Massachusetts Institute of Technology

The book was reviewed in Foreign Affairs

You can buy the book here

Upgrading in global value chains: lessons from Latin America clusters

World Development, 33(4): 549-73

The article is in collaboration with Elisa Giuliani and Carlo Pietrobelli.

It has been shown that clustering helps local enterprises in industrial districts overcome growth constraints and compete in distant markets in advanced and less developed countries. Nevertheless, recent contributions have stressed that more attention needs to be paid to external linkages and to the role played by global buyers to foster upgrading at cluster levels. In this study, we contribute to this debate focusing on the analysis of the relationships existing between clustering, global value chains, upgrading and sectoral patterns of innovation in Latin America. We find that sectoral specificities matter and influence the mode and the extent of upgrading in clusters integrated in global value chains.
Download the pdf, JA World Development 2005-04