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Upgrading process in global value chains: Evidence from Latin American countries

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  • Luisa Rivera-Basques

    (University of Sonora, Mexico)

Abstract

This paper analyzes the participation of Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, and Peru (Latin American countries) in Global Value Chains (GVCs) from a multi-regional and multi-sectoral perspective in the period 1995-2015. Our objective is to answer a key question: the participation of Latin American countries in GVCs, in which sectors and industries have they evolved towards upgrading processes? We use a multi-regional in-put-output model (MRIO) to estimate domestic and foreign value-added rates as a percentage of total national exports, classifying the participation of the countries in GVCs into four pro-duction stages: strategic, intermediate-final stages, initial and secondary. We find that GVCs have been drivers of the development of the manufacturing industry in Mexico, Brazil, Argentina, and Costa Rica. Upgrading processes stand out in value-added intensive industries, such as the manufacture of vehicles, trailers and semi-trailers, electronic, electrical, and optical products, among others.

Suggested Citation

  • Luisa Rivera-Basques, 2022. "Upgrading process in global value chains: Evidence from Latin American countries," Technium Social Sciences Journal, Technium Science, vol. 32(1), pages 359-375, June.
    • Handle: RePEc:tec:journl:v:32:y:2022:i:1:p:359-375
    DOI: 10.47577/tssj.v32i1.6673
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    References listed on IDEAS

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    1. David L. Hummels & Dana Rapoport & Kei-Mu Yi, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, vol. 4(Jun), pages 79-99.
    2. De Backer, Koen & Miroudot, Sébastien, 2014. "Mapping global value chains," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37176, May.
    3. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    4. Ocampo, Jose Antonio & Ros, Jaime (ed.), 2011. "The Oxford Handbook of Latin American Economics," OUP Catalogue, Oxford University Press, number 9780199571048.
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    More about this item

    Keywords

    Global value chains; MRIO; Latin American Countries; Value-Added;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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