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DECEMBER • 2019 Competitiveness and its determinants: a systemic analysis for developing countries Victor Medeiros, Lucas Gonçalves Godoi and Evandro Camargos Teixeira 7 The gross domestic product (GDP) shares of the agriculture sector and the hydrocarbon and mining sector in the countries of South America between 1960 and 2014 Pedro Henrique de Abreu Paiva and Carlos José Caetano Bacha 27 Green jobs in Argentina: opportunities to move forward with the environmental and social agenda Christoph Ernst, Ana Sofía Rojo Brizuela and Daniele Epifanio 51 Income elasticities and inequality of poverty in urban and rural areas of the Brazilian states: a spatial approach Helson Gomes de Souza, Francisco José Silva Tabosa and Jair Andrade Araújo 73 A typology of precarious employment for Chile: precariousness as a cross-class phenomenon Osvaldo Blanco and Dasten Julián 91 What is life like for our elderly? An empirical study of the quality of life of older people in Colombia Bilver Adrián Astorquiza Bustos and Óscar Armando Chingal 129 Canton growth in Ecuador and the role of spatial heterogeneity Nicola Pontarollo, Rodrigo Mendieta and Diego Ontaneda 149 Industrial growth and consumer goods inflation in Mexico: an econometric analysis Víctor Manuel Cuevas Ahumada and Cuauhtémoc Calderón Villarreal 175 Fiscal disparities in Uruguay’s regions: the role of a new system of intergovernmental equalization transfers Leonel Muinelo-Gallo, Joana Urraburu Bordon and Pablo Castro Scavone 197 The social and economic effects of introducing reverse mortgages in Chile José Luis Ruiz, Pablo Tapia and José Donoso 221 ISSN 0251-2920 DECEMBER • 2019 Alicia Bárcena Executive Secretary Mario Cimoli Deputy Executive Secretary Raúl García-Buchaca Deputy Executive Secretary for Management and Programme Analysis Osvaldo Sunkel Chairman of the Editorial Board Miguel Torres Editor Alicia Bárcena Executive Secretary Mario Cimoli Deputy Executive Secretary Raúl García-Buchaca Deputy Executive Secretary for Management and Programme Analysis Osvaldo Sunkel Chair of the Editorial Board Miguel Torres Editor The CEPAL Review was founded in 1976, along with the corresponding Spanish version, Revista CEPAL, and it is published three times a year by the Economic Commission for Latin America and the Caribbean (ECLAC), which has its headquarters in Santiago. The Review has full editorial independence and follows the usual academic procedures and criteria, including the review of articles by independent external referees. The purpose of the Review is to contribute to the discussion of socioeconomic development issues in the region by offering analytical and policy approaches and articles by economists and other social scientists working both within and outside the United Nations. The Review is distributed to universities, research institutes and other international organizations, as well as to individual subscribers. The opinions expressed in the articles are those of the authors and do not necessarily reflect the views of ECLAC. The designations employed and the way in which data are presented do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries. 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Contents Competitiveness and its determinants: a systemic analysis for developing countries Victor Medeiros, Lucas Gonçalves Godoi and Evandro Camargos Teixeira . 7 The gross domestic product (GDP) shares of the agriculture sector and the hydrocarbon and mining sector in the countries of South America between 1960 and 2014 Pedro Henrique de Abreu Paiva and Carlos José Caetano Bacha . 27 Green jobs in Argentina: opportunities to move forward with the environmental and social agenda Christoph Ernst, Ana Sofía Rojo Brizuela and Daniele Epifanio . 51 Income elasticities and inequality of poverty in urban and rural areas of the Brazilian states: a spatial approach Helson Gomes de Souza, Francisco José Silva Tabosa and Jair Andrade Araújo . 73 A typology of precarious employment for Chile: precariousness as a cross-class phenomenon Osvaldo Blanco and Dasten Julián . 91 What is life like for our elderly? An empirical study of the quality of life of older people in Colombia Bilver Adrián Astorquiza Bustos and Óscar Armando Chingal . 129 Canton growth in Ecuador and the role of spatial heterogeneity Nicola Pontarollo, Rodrigo Mendieta and Diego Ontaneda . 149 Industrial growth and consumer goods inflation in Mexico: an econometric analysis Víctor Manuel Cuevas Ahumada and Cuauhtémoc Calderón Villarreal . 175 Fiscal disparities in Uruguay’s regions: the role of a new system of intergovernmental equalization transfers Leonel Muinelo-Gallo, Joana Urraburu Bordon and Pablo Castro Scavone . 197 The social and economic effects of introducing reverse mortgages in Chile José Luis Ruiz, Pablo Tapia and José Donoso . 221 Guidelines for contributors to the CEPAL Review . 245 ECLAC recent publications . 246 Explanatory notes - Three dots (...) indicate that data are not available or are not separately reported. - A dash (-) indicates that the amount is nil or negligible. - A full stop (.) is used to indicate decimals. - The word “dollars” refers to United States dollars, unless otherwise specified. - A slash (/) between years (e.g. 2013/2014) indicates a 12-month period falling between the two years. - Individual figures and percentages in tables may not always add up to the corresponding total because of rounding. Competitiveness and its determinants: a systemic analysis for developing countries Victor Medeiros, Lucas Gonçalves Godoi and Evandro Camargos Teixeira Abstract This paper seeks to make a comparative and econometric analysis of competitiveness in developing countries, identifying its determinants and sources of variation. It uses the data envelopment analysis methodology to generate measures of competitiveness. The determinants of competitiveness are obtained through a Tobit model based on the systemic competitiveness approach. As average competitiveness is low, the main results show that resource allocation could be improved in many of the countries in the sample. In addition to business factors such as innovation and the sophistication of the business environment, structural aspects such as market size and quality of demand, along with systemic factors such as infrastructure, health, education, workforce training and the macroeconomic environment, are all important for enhancing the competitiveness of emerging countries. Keywords Economic growth, competitiveness, productivity, industrial efficiency, developing countries, comparative analysis, econometric models JEL classification C24, O20, O57 Authors Victor Medeiros is a doctoral student in economics at the Faculty of Economic Sciences, in the Centre for Regional Development and Planning of the Federal University of Minas Gerais, Brazil. Email: [email protected]. Lucas Gonçalves Godoi holds a master’s degree in economics from the Ribeirão Preto School of Economics, Administration and Accounting of the University of São Paulo, Brazil. E-mail: [email protected]. Evandro Camargos Teixeira is an assistant professor in the Department of Economics of the Federal University of Viçosa, Brazil. Email: [email protected]. 8 CEPAL Review N° 129 • December 2019 I. Introduction According to Ferraz, Kupfer and Haguenauer (1996), competitiveness can be defined as a firm’s capacity to create and implement competitive strategies and to sustainably maintain or increase its product share in the market. These capacities are associated with various factors, which may or may not be controlled by the firms, ranging from staff technical training and managerial-administrative processes, through to public policies, infrastructure supply and the specific features of demand and supply. Competitiveness is important because it is positively related to long-term economic growth. A country can be considered competitive when it manages its resources and skills in such a way that, in addition to increasing the production of its firms, it improves its citizens’ quality of life (IMD, 2012). According to a standard definition provided by the European Union (2001), competitiveness, at the regional and