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Composition of Trade in Latin America and the Caribbean

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  • Xiaodan Ding
  • Metodij Hadzi-Vaskov

Abstract

This study analyzes composition of goods trade in Latin America and the Caribbean (LAC) along four main dimensions: revealed comparative advantage, product complexity, sophistication, and diversification. After describing some key trade patterns over the last half century, it compares the findings for LAC with other regions. Second, the study investigates how infrastructure quality, education, and tariff levels affect export composition. Third, using an approach based on product proximity, it aims to predict changes in LAC’s future composition of exports. The study concludes that policies to upgrade human capital and infrastructure are essential for increasing LAC’s export share in high-skill products.

Suggested Citation

  • Xiaodan Ding & Metodij Hadzi-Vaskov, 2017. "Composition of Trade in Latin America and the Caribbean," IMF Working Papers 2017/042, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2017/042
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    References listed on IDEAS

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    Cited by:

    1. Ms. Kimberly Beaton & Ms. Valerie Cerra & Metodij Hadzi-Vaskov, 2021. "Trade, Jobs, and Inequality," IMF Working Papers 2021/178, International Monetary Fund.
    2. Peguero, Felipe & Zapata, Samuel & Sandoval, Luis, 2019. "Agricultural Production of Central America and the Caribbean: Challenges and Opportunities," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 34(3), September.
    3. International Monetary Fund, 2017. "Cluster Report: Trade Integration in Latin America and the Caribbean," IMF Staff Country Reports 2017/066, International Monetary Fund.
    4. Metodij Hadzi-Vaskov & Mr. Luca A Ricci, 2019. "The Nonlinear Relationship Between Public Debt and Sovereign Credit Ratings," IMF Working Papers 2019/162, International Monetary Fund.
    5. International Monetary Fund, 2018. "Colombia: Selected Issues," IMF Staff Country Reports 2018/129, International Monetary Fund.
    6. International Monetary Fund, 2020. "Peru: Selected Issues," IMF Staff Country Reports 2020/004, International Monetary Fund.
    7. International Monetary Fund, 2018. "Chile: Selected Issues Paper," IMF Staff Country Reports 2018/312, International Monetary Fund.
    8. Ms. Kimberly Beaton & Aliona Cebotari & Andras Komaromi, 2017. "Revisiting the Link between Trade, Growth and Inequality: Lessons for Latin America and the Caribbean," IMF Working Papers 2017/046, International Monetary Fund.
    9. International Monetary Fund, 2017. "Brazil: Selected Issues," IMF Staff Country Reports 2017/216, International Monetary Fund.
    10. International Monetary Fund, 2020. "Peru: 2019 Article IV Consultation-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for Peru," IMF Staff Country Reports 2020/003, International Monetary Fund.
    11. Gebrerufael Samson Gebresilasie, 2017. "Dynamics of Product Complexity in Africa: Structural Estimation Using Structuralists Model," Journal of Heterodox Economics, Sciendo, vol. 4(1), pages 11-35, June.
    12. International Monetary Fund, 2020. "Eastern Caribbean Currency Union: 2019 Discussion on Common Policies of Member Countries-Press Release; Staff Report; and Statement by the Executive Director for the Eastern Caribbean Currency Union," IMF Staff Country Reports 2020/070, International Monetary Fund.
    13. International Monetary Fund, 2018. "Indonesia: Selected Issues," IMF Staff Country Reports 2018/033, International Monetary Fund.
    14. Reda Cherif & Fuad Hasanov & Lichen Wang, 2018. "Sharp Instrument: A Stab at Identifying the Causes of Economic Growth," IMF Working Papers 2018/117, International Monetary Fund.
    15. Ms. Kimberly Beaton & Aliona Cebotari & Xiaodan Ding & Andras Komaromi, 2017. "Trade Integration in Latin America: A Network Perspective," IMF Working Papers 2017/148, International Monetary Fund.
    16. Saalfield, Jon, 2022. "Potential trade implications of Latin America and the Caribbean’s climate commitments under the Paris Agreement," Comercio Internacional 48555, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    17. Valerie Cerra & Alfredo Cuevas & Carlos Goes & Izabela Karpowicz & Troy Matheson & Issouf Samake & Svetlana Vtyurina, 2017. "Determinants of Infrastructure and Its Financing," Emerging Economy Studies, International Management Institute, vol. 3(2), pages 113-126, November.

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