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Regional versus global production networks: where does Latin America stand?

Author

Listed:
  • Luis Marcelo Florensa
  • Laura M uez-Ramos
  • Inmaculada Mart󹑺-Zarzoso
  • Mar𨁌uisa Recalde

Abstract

This article quantifies the effects of the Latin American Integration Association (LAIA) and the Southern Common Market (Mercosur) on the trade of intermediate goods and also on the trade of final goods. It is the first article to investigate whether increasing imports of intermediate goods from different regions to Latin America have led to higher exports of final and intermediate goods. The article uses sectoral data for trade in goods between 11 LAIA members over the period 1991-2008. The main results indicate evidence of increasing regional production networks, which have strengthened in the 2000s. Moreover, the findings show evidence of the emergence of global production networks, especially with respect to intermediate imports from China.

Suggested Citation

  • Luis Marcelo Florensa & Laura M uez-Ramos & Inmaculada Mart󹑺-Zarzoso & Mar𨁌uisa Recalde, 2015. "Regional versus global production networks: where does Latin America stand?," Applied Economics, Taylor & Francis Journals, vol. 47(37), pages 3938-3956, August.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3938-3956
    DOI: 10.1080/00036846.2015.1023938
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    References listed on IDEAS

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    1. Scott L. Baier & Jeffrey H. Bergstrand & Erika Vidal, 2007. "Free Trade Agreements In the Americas: Are the Trade Effects Larger than Anticipated?," The World Economy, Wiley Blackwell, vol. 30(9), pages 1347-1377, September.
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    4. Gianluca Orefice & Nadia Rocha, 2014. "Deep Integration and Production Networks: An Empirical Analysis," The World Economy, Wiley Blackwell, vol. 37(1), pages 106-136, January.
    5. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso, 2014. "Trade in intermediate goods and Euro-Med production networks," Middle East Development Journal, Taylor & Francis Journals, vol. 6(2), pages 215-231, July.
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    Cited by:

    1. Lin, Chin-Ho, 2018. "Tariff evasion in machinery production networks: Evidence from East Asia," Economic Modelling, Elsevier, vol. 70(C), pages 115-126.
    2. Chin‐Ho Lin, 2020. "Impact of tariff rates on the probability of trade relationship survival: Evidence from ASEAN+6 manufactured goods," Pacific Economic Review, Wiley Blackwell, vol. 25(4), pages 457-474, October.
    3. Tite Ehuitché BEKE & Dieu-Donné Melagne N’GUESSAN, 2021. "Echanges agricoles intrarégionaux et sécurité alimentaire dans l’espace CEDEAO," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 51-81.
    4. Sanjeev Vasudevan & M. Suresh Babu, 2021. "Global production sharing and trade effects: an analysis of Eurasian Economic Union," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 633-665, December.
    5. Mateus Silva Chang, 2017. "Machinery production networks in Latin America: a quantity and quality analysis," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 26(1), pages 1-35, December.
    6. Lin, Chin-Ho, 2015. "The impact of tariff rates on the probability of trade relationships survival: evidence from ASEAN+6 manufactured goods," MPRA Paper 71260, University Library of Munich, Germany.
    7. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).

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