Latin American Journal of Economic Development

Presentation

2025-05-14T10:24:42-04:00

El presente número comprende cuatro artículos sobre tópicos de desarrollo económico y social en Bolivia y América Latina. El primero analiza la factibilidad de las fusiones bancarias en presencia de economías de escala en Bolivia. El segundo evalúa la evolución de la criminalidad en el Estado de México y el impacto de las políticas de seguridad. En el tercero se evidencia, para el caso boliviano, la existencia de déficits gemelos reversos y se discute la relación entre el resultado fiscal y la balanza comercial. Por último, el cuarto artículo destaca la importancia de la participación de los actores y la resiliencia comunitaria en la cuenca del Río Ambi en Ecuador. Manifestamos nuestro profundo agradecimiento a los miembros del Comité Interno y del Comité Externo por el continuo apoyo en la evaluación de los artículos de la revista. También expresamos nuestra gratitud a la Universidad Católica Boliviana “San Pablo” por brindar el apoyo financiero que ha hecho posible la publicación del presente número. Con mucho agrado les invitamos a leer la Edición 43 de la Revista LAJED. Estamos seguros de que su lectura permitirá extraer lecciones para el desarrollo de Bolivia y la región.

Mergers in the banking sector

2024-10-16T11:25:40-04:00

Given the current dynamics of the banking industry, where alliances between agents are more frequently observed, either by size or portfolio specialization, this paper tests the presence of economies of scale, scope, and cost subadditivity for the Bolivian banking sector to determine whether there are technical grounds to justify mergers. Using the technique of seemingly unrelated regression, cost functions are estimated according to bank size and for the industry, considering the case of commercial banks. The results suggest that there are technical foundations that support the feasibility of mergers in the Bolivian baking sector due to the presence of conglomerate economies in this industry.

Crime and Security Policies in the State of Mexico 1997-2023

2025-04-14T15:42:13-04:00

The article analyses the evolution and dynamics of crime incidence in the State of Mexico, graphically evaluating the impact of citizen security policies implemented during the government administration for the period 2017-2023. For this purpose, the Autoregressive, Integrated, Moving Average model is applied, which allows determining the underlying behaviours for a selection of variables or crimes that negatively affect Mexican society. The study is relevant because it takes advantage of the available information bases and applies the aforementioned methodology in order to carry out continuous monitoring and evaluation of trends, as well as public intervention measures implemented to mitigate the criminal phenomenon, which may be methodologically novel at the national, subnational and local levels in the Mexican case. contributing to improve decision-making.

What does precede what? Relationship between the fiscal result and the trade balance: empirical evidence of reverse twin deficits during 1995-2021

2025-01-05T00:37:31-04:00

This study examines the dynamic relationship between the trade balance and the primary fiscal balance in Bolivia during the period 1995-2021, aiming to determine which of these balances precedes the other and the direction of causality. Using quarterly data and a wide range of robust econometric methodologies –including Granger causality tests, error correction models (VEC, ARDL, FMOLS, CCR), and nonlinear models (NARDL)– empirical evidence consistent with the reverse twin deficits hypothesis was found. The results reveal that declines in the trade balance precede and lead to reductions in the primary fiscal balance, as well as increases in primary public spending. This transmission mechanism suggests that the Bolivian government uses public spending as a countercyclical tool to mitigate the adverse effects of trade deficits on aggregate demand. This phenomenon appears to be driven, in essence, by Bolivia’s heavy reliance on the international prices of the natural resources it exports, which play a crucial role in the dynamics of the trade balance.

Understanding Stakeholder Engagement and Community Resilience in the Ambi Watershed

2025-04-05T10:52:03-04:00

In the Ambi River basin of northern Ecuador, aging irrigation systems are increasingly strained by ecosystem degradation, exacerbated by persistent drought, ineffective management practices, and escalating pollution levels, leading to reduced irrigation efficiency. The upper and middle basin suffer from municipal, industrial, and agricultural waste, making the watershed vulnerable to water exploitation and quality issues. This study examines stakeholder engagement, focusing on resilience in socio-technical systems over inclusive cooperation. A Salinas irrigation system case study shows how farmers achieve mutual water use interests and resilience against scarcity, guided by social-hydrological resilience theory. The interviews show weak relationships between local organizations and government agencies, except in Salinas. Effective collaboration with irrigation boards has been developed in Salinas to rebuild old water structures. Improving community resilience to drought in the Ambi River basin can be achieved through stakeholder engagement. The paper argues that, despite recognizing the long-term impact of ecosystem damage due to poor water quality and drought, governmental water management decisions tend to benefit from a technical approach to resilience over sociohydrological decisions. This technical approach overlooks the critical importance of local social dynamics and multi-stakeholder engagements. In conclusion, the study highlights the need for improved stakeholder engagement and incorporating local social contexts into water management strategies to enhance community resilience to drought in the Ambi River basin.