Descrição
The commodity boom between 2002 and 2008 played an importantrole in increasing export earnings from Latin America. Growing demandfrom China for primary products was one factor stimulating the boom.While the direct effects of the growth of exports from Latin Americato China have been extensively explored, the indirect impact of higherChinese demand for commodities on global commodity prices hasreceived less attention. This paper estimates the contribution made bythe growth of Chinese demand to the rise in the prices of the 15 maincommodities exported from the region. On the basis of these estimates,it calculates the total gain for the region as a whole in export revenuesfrom the "China effect" on world prices. It also provides estimates for17 Latin American countries of the net effect of Chinese-induced priceincreases on their trade balances.