IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v47y2015i37p3938-3956.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2015.1023938
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2015.1023938?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. 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.
    4. 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.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Sanjeev Vasudevan & Suresh Babu Manalaya, 2025. "Trade Continuity and Global Production Sharing in Emerging Economies: Evidence from Panel Gravity Analysis," Working Papers 2025-275, Madras School of Economics,Chennai,India.
    6. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).
    7. 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.
    8. Sanjeev Vasudevan & Suresh Babu Manalaya, 2024. "Trade Effects of Eurasian Economic Union and Global Production Sharing: A Gravity Analysis," Working Papers 2024-272, Madras School of Economics,Chennai,India.
    9. Lin, Chin-Ho, 2018. "Tariff evasion in machinery production networks: Evidence from East Asia," Economic Modelling, Elsevier, vol. 70(C), pages 115-126.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tristan Kohl, 2014. "Do we really know that trade agreements increase trade?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 443-469, August.
    2. Gunnella, Vanessa & Lebastard, Laura & Lopez-Garcia, Paloma & Serafini, Roberta & Mattioli, Alessandro Zona, 2021. "The impact of the euro on trade: two decades into monetary union," Occasional Paper Series 283, European Central Bank.
    3. Pamela Smith & Xiangwen Kong, 2022. "Intellectual property rights and trade: The exceptional case of GMOs," The World Economy, Wiley Blackwell, vol. 45(3), pages 763-811, March.
    4. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).
    5. Rebecca Freeman & Samuel Pienknagura, 2019. "Are all trade agreements equal? The role of distance in shaping the effect of economic integration agreements on trade flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(2), pages 257-285, May.
    6. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2014. "Product Complexity, Quality of Institutions and the Protrade Effect of Immigrants," The World Economy, Wiley Blackwell, vol. 37(1), pages 63-85, January.
    7. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    8. Jeffrey H. Bergstrand & Scott L. Baier, 2010. "An Evaluation of Swiss Free Trade Agreements Using Matching Econometrics," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(3), pages 239-250, September.
    9. Hoekman, Bernard & Nicita, Alessandro, 2011. "Trade Policy, Trade Costs, and Developing Country Trade," World Development, Elsevier, vol. 39(12), pages 2069-2079.
    10. Hylke Vandenbussche & William Connell & Wouter Simons, 2022. "Global value chains, trade shocks and jobs: An application to Brexit," The World Economy, Wiley Blackwell, vol. 45(8), pages 2338-2369, August.
    11. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, vol. 11(3), pages 401-414, July.
    12. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    13. Felipa de Mello-Sampayo, 2017. "Competing-destinations gravity model applied to trade in intermediate goods," Applied Economics Letters, Taylor & Francis Journals, vol. 24(19), pages 1378-1384, November.
    14. Peter Egger & Martin Gassebner, 2015. "International terrorism as a trade impediment?," Oxford Economic Papers, Oxford University Press, vol. 67(1), pages 42-62.
    15. Lars Karlsson & Peter Hedberg, 2021. "War and trade in the peaceful century: the impact of interstate wars on bilateral trade flows during the first wave of globalization, 1830–1913," Economic History Review, Economic History Society, vol. 74(3), pages 809-830, August.
    16. D. A. Izotov & K. I. Tochkov, 2020. "Interaction of the Russian Far East and Asia-Pacific Countries: Assessment of Institutional and Tariff Barriers to Trade," Regional Research of Russia, Springer, vol. 10(2), pages 182-193, April.
    17. Hur, Jung & Alba, Joseph D. & Park, Donghyun, 2010. "Effects of Hub-and-Spoke Free Trade Agreements on Trade: A Panel Data Analysis," World Development, Elsevier, vol. 38(8), pages 1105-1113, August.
    18. Salvador Gil & Rafael Llorca & J. Antonio Martínez‐Serrano, 2008. "Assessing the Enlargement and Deepening of the European Union," The World Economy, Wiley Blackwell, vol. 31(9), pages 1253-1272, September.
    19. Daniel Berger & William Easterly & Nathan Nunn & Shanker Satyanath, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," American Economic Review, American Economic Association, vol. 103(2), pages 863-896, April.
    20. Kruse, Hendrik W. & Martínez-Zarzoso, Inma, 2016. "Transfers in the gravity equation: The case of foreign aid," University of Göttingen Working Papers in Economics 288, University of Goettingen, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3938-3956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.