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Intraregional trade in South America, 1913-50. Economic linkages before institutional agreements

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Author Info

  • Jose Peres Cajias
  • Marc Badia-Miro
  • Anna Carreras-Marin

    (Universitat de Barcelona)

Abstract

With the exception of the North American Free Trade Agreement (NAFTA), trade integration is still modest in Latin America, at around 20% of total trade. Surprisingly, these levels were higher in 1945, when the figure for imports stood at 25.6%. Paradoxically, this result shows that trade integration reached its peak before trade integration agreements were signed. To understand the reasons for this, we examine intraregional trade throughout the interwar period (1913-1950). We analyze five national cases: Argentina, Bolivia, Brazil, Chile and Peru. As far as we know, this is the first paper in the literature on intraregional trade during the interwar period. There are other papers on intraregional trade in Latin America, but they focus on the period after the 1960s. The analysis of intraregional trade in the interwar period is also useful to the Latin American industrialization debate. Given the disruption in world trade flows and the existence of some industrial capacity, the paper looks at any possible increase in intra-industry trade. There are two main conclusions: a) with the exception of the World War periods, intraregional trade has been low since 1913; b) in general, intraregional trade reflects the overall trade specialization: there is a high concentration of low value added products.

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Bibliographic Info

Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 270.

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Length: 0 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:bar:bedcje:2012270

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Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
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  1. Calderon, Cesar & Chong, Alberto & Stein, Ernesto, 2007. "Trade intensity and business cycle synchronization: Are developing countries any different?," Journal of International Economics, Elsevier, vol. 71(1), pages 2-21, March.
  2. Federico, Giovanni & Tena, Antonio, 1991. "On the accuracy of foreign trade statistics (1909-1935): Morgenstern revisited," Explorations in Economic History, Elsevier, vol. 28(3), pages 259-273, July.
  3. M. d. MAR RUBIO & C�SAR Y��EZ & MAURICIO FOLCHI & ALBERT CARRERAS, 2010. "Energy as an indicator of modernization in Latin America, 1890-1925," Economic History Review, Economic History Society, vol. 63(3), pages 769-804, 08.
  4. Colistete, Renato P., 2010. "Revisiting Import-Substituting Industrialisation in Post-War Brazil," MPRA Paper 24665, University Library of Munich, Germany.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Latin American Economic History: new questions, new data, old problems
    by sebastianfleitas in NEP-HIS blog on 2012-03-18 18:25:09
  2. International Trade Within Regions
    by Timothy Taylor in Conversable Economist on 2012-04-04 11:00:00
  3. Latin American Economic History: new questions, new data, old problems
    by sebastianfleitas in NEP-HIS blog on 2012-03-18 18:25:09

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