Latin American Neoextractivismo: Split or Deepening of the Liberal Model of the Economy?

This paper explores the economic effects of extractivism in Chile, Colombia, Mexico and Peru, applying the Dutch Disease model. A Johansen cointegration test finds a strong negative relationship between the appreciation of the real exchange rate due to increased government spending, and a decreasing participation of manufactures both at the national level and in exports. Other weaker, yet still significant, economic effects are also suggested. As the model of growth based on natural resources continues in Latin America, its economic effects must be discerned in order to to guarantee a more fair inclusion in global trade and stronger national economic growth.