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