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REAL PRODUCT AND PRICE COMPARISONS BETWEEN LATIN AMERICA AND THE REST OF THE WORLD
Author(s) -
SalazarCarrillo Jorge,
Alonso Irma Tirado
Publication year - 1988
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1988.tb00559.x
Subject(s) - economics , latin americans , purchasing power , gross domestic product , rest (music) , measures of national income and output , national income and product accounts , per capita income , purchasing power parity , exchange rate , gross domestic income , international economics , monetary economics , macroeconomics , gross income , public economics , medicine , philosophy , linguistics , demography , tax reform , sociology , cardiology , state income tax
The purpose of this article is to add 12 Latin American countries to the Phase III of the United National International Comparisons Project (ICP). The data for Latin America was obtained through ECIEL. It has been demonstrated that the exchange rates do not usually reflect the relative purchasing power of currencies. When low‐income countries are compared to higher income countries the exchange rate conversion tends to understate the relative income of the lower income countries. This is true for the total GDP and even more so for the GDP components. In per capita terms it is found that for low income countries their income is more than twice as great as is indicated by the exchange rate conversion.