This chapter picks up the century-old communist idea that this system will one day evolve to dominate the capitalist system. Now that China is successfully catching up, it not only has gained considerable weight globally but it is also an emerging power in its own region of South East Asia....

Using a gravity model, this article presents an analysis of aggregate trade flows aimed at identifying China’s impact on Latin America’s trade. The results obtained indicate that: i) China´s growth in the last years implied a growing supply of exports to this market from most countries in...

The impact of international trade, or “openness”, on economic growth is difficult to quantify because of reverse causality. In this paper, I use recent advances in gravity equation estima- tion to generate a geography-based instrument for openness a la Frankel and Romer (1999). In contrast...