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Export Diversification Dynamics in Latin America

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  • Chanci, David

Abstract

The abundance of natural resources in Latin American countries has led to a challenge for governments when designing their public policies for economic growth. Moreover, in recent years the increase in the price of commodities has stimulated a rise in the terms of trade and a tendency towards export concentration. Conversely, today there is more agreement about the role of export diversification in order to enhance economic growth in developing economies. This paper presents a detailed description of the exporter behavior for seventeen countries in Latin America between 1990 and 2011 focusing on export diversification in terms of commodities and markets. Also we explore the diversification by dividing the export growth rate into the contribution of existing, new and disappearing exports. We found that exports in Latin American have diversified across countries with Mexico, Brazil and Argentina being the most diverse. However in all the Latin American countries the export growth rate is strongly supported by existing exports more than new exports

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44241.

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Date of creation: 30 Dec 2012
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Handle: RePEc:pra:mprapa:44241

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Keywords: International trade dynamics; Export Diversification; Intensive and Extensive margins;

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  1. Ricardo Hausmann & Dani Rodrik, 2002. "Economic Development as Self-Discovery," NBER Working Papers 8952, National Bureau of Economic Research, Inc.
  2. Cadot, Olivier & Carrère, Céline & Strauss-Kahn, Vanessa, 2010. "Export Diversification: What's behind the Hump?," CEPREMAP Working Papers (Docweb) 1011, CEPREMAP.
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