LAC International Trade

Latin American International Trade:Openness, Structure and Comparative Advantage: 

Latin American International Trade: Openness, Structure and Comparative Advantage Guillermo Perry Chief Economist for Latin America The World Bank March 2000

Structurally Adjusted Trade Intensity: 

Structurally Adjusted Trade Intensity

Structurally Adjusted Trade Intensity - Latin America: 

Structurally Adjusted Trade Intensity - Latin America

Structurally Adjusted Trade Intensity - Asia: 

Structurally Adjusted Trade Intensity - Asia

Hydrocarbons and Minerals- Regional Comparison: 

Hydrocarbons and Minerals- Regional Comparison

Land Intensive Commodities - Regional Comparison: 

Land Intensive Commodities - Regional Comparison

Major Natural Resource and Land Intensive Commodities - Latin America: 

Major Natural Resource and Land Intensive Commodities - Latin America

Major Natural Resource and Land Intensive Commodities - Asia: 

Major Natural Resource and Land Intensive Commodities - Asia

Labor and Capital Intensive Merchandise - Regional Comparison: 

Labor and Capital Intensive Merchandise - Regional Comparison

Labor Intensive Merchandise - Latin America: 

Labor Intensive Merchandise - Latin America

Labor Intensive Merchandise - Asia: 

Labor Intensive Merchandise - Asia

Capital Intensive Merchandise - Latin America: 

Capital Intensive Merchandise - Latin America

Capital Intensive Merchandise - Asia: 

Capital Intensive Merchandise - Asia

Machinery: 

Machinery

Balassa Index: Hydrocarbons and Minerals - Regional Comparison: 

Balassa Index: Hydrocarbons and Minerals - Regional Comparison

Balassa Index: Land Intensive Commodities - Regional Comparison: 

Balassa Index: Land Intensive Commodities - Regional Comparison

Balassa Index: Major Natural Resource and Land Intensive Commodities - Latin America: 

Balassa Index: Major Natural Resource and Land Intensive Commodities - Latin America

Balassa Index: Major Natural Resource and Land Intensive Commodities - Asia: 

Balassa Index: Major Natural Resource and Land Intensive Commodities - Asia

Balassa Index: Labor and Capital Intensive Merchandise - Regional Comparison: 

Balassa Index: Labor and Capital Intensive Merchandise - Regional Comparison

Balassa Index: Labor Intensive Merchandise - Latin America: 

Balassa Index: Labor Intensive Merchandise - Latin America

Balassa Index: Labor Intensive Merchandise - Asia: 

Balassa Index: Labor Intensive Merchandise - Asia

Balass Index: Capital Intensive Merchandise - Latin America: 

Balass Index: Capital Intensive Merchandise - Latin America

Balassa Index: Capital Intensive Merchandise -Asia: 

Balassa Index: Capital Intensive Merchandise -Asia

Intra-Industry Trade Index: 

Intra-Industry Trade Index

Intra-Industry Trade Index - Sample Average: 

Intra-Industry Trade Index - Sample Average

Intra-Industry Trade Index- Latin America: 

Intra-Industry Trade Index- Latin America

Intra-Industry Index - Asia: 

Intra-Industry Index - Asia

Net Service Exports per Workers - Regional Comparison: 

Net Service Exports per Workers - Regional Comparison

Structure of Service Exports: 

Structure of Service Exports

Structure of Service Imports: 

Structure of Service Imports

Summary: Regional Comparisons: 

Summary: Regional Comparisons LAC has become more open since the mid-1980s, but still lags behind Asia and OECD countries LAC’s “revealed” comparative advantage remains in natural-resource and land-intensive products Asia remains competitive in labor-intensive exports, and to a lesser extent, in capital intensive products

Slide46: 

Summary: Sub-Regional Comparisons The US remains LAC’s most important export market, and still is an important purchaser of US exports Mercosur is an exception in to this regional pattern

Slide47: 

Summary: LAC’s Comparative Advantage LAC remains dependent on exports of natural-resource and land-intensive products, with relatively low intra-industry trade Some exceptions: Brazil in capital-intensive products Mexico in labor- and capital-intensive products Colombia, a very minor exporter of labor-intensive products Some notable cases of high reliance on natural resources and land: Chile, Venezuela and Argentina

Slide48: 

Why this is important? Effects on income distribution Competition based on relative factor abundance, and less on product differentiation and productivity Need to look deeper into services, which may help LAC follow the path of rich countries such as Australia and New Zealand (natural resource-rich, but competitive in services that use human capital) Protection is not the answer Savings and education could help change the Region’s comparative advantage