IMF Working Papers

Composition of Trade in Latin America and the Caribbean

By Xiaodan Ding, Metodij Hadzi-Vaskov

March 9, 2017

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Xiaodan Ding, and Metodij Hadzi-Vaskov. Composition of Trade in Latin America and the Caribbean, (USA: International Monetary Fund, 2017) accessed November 12, 2024

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Summary

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.

Subject: Commodities, Comparative advantage, Education, Exports, Income inequality, International trade, National accounts, Tariffs, Taxes

Keywords: Asia and Pacific, Caribbean, Comparative Advantage, Concentration index, Diversification, Economic Complexity, Europe, Export Composition, Exports, Global, High-skill product, Income inequality, Latin America, Product complexity, Product concentration, Product diversification, Product proximity, Product sophistication, Sub-Saharan Africa, Tariffs, Technology-intensity product classification, Trade, WP

Publication Details

  • Pages:

    44

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/042

  • Stock No:

    WPIEA2017042

  • ISBN:

    9781475585490

  • ISSN:

    1018-5941

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