Economic Integration and Trade Competitiveness in Latin America
AbstractThere are large differences in gross domestic products by sectors among Latin American countries, and the majority of these differences are due to the value of industrial and service sectors. The structural reforms in countries of Latin America has broadly focused in the five major areas comprising international trade, financial markets, labor markets, and the generation and use of public resources. Consequently the financial development has improved, especially the depth of financial intermediation, private sector participation in banking, and the size and activity of stock markets. The economic integration and structural reforms in Latin America considered that import substitution in manufacturing sector would be synonymous with industrialization, which in turn was seen as the key to development. As far as the efficient generation and use of public resources are concerned, much has been done to make the value-added tax system efficient and to privatize public enterprises. In response to the liberalization of economies, which has been followed by a significant increase in their imports, was found primarily due to lower inflation, lesser government intervention, and fewer trade barriers. International trade has been the key indicator of the overall economic growth of Latin American countries. The paper reviews the approach to trade policy in early development research and evolution of thoughts integrating the economic and structural reforms in Latin America. The reference period for analysis of spatial and temporal data is 1950-2003. The aspects of trade and growth and problems of Balance of Payments and their relation with macroeconomic policy have also been discussed in the paper. Further, this paper analyzes economic integration between two economies: one central, with a large local market, and the other peripheral, with a small local market. Each economy has an imperfectly competitive manufacturing sector. It has been observed in the discussion that the trade liberalization creates a strong incentive for the imperfectly competitive industry to concentrate in the central region, near the large market. Additionally, the role of supporting policies to assure the success of trade liberalization is analyzed in the paper.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0409013.
Length: 24 pages
Date of creation: 15 Sep 2004
Date of revision:
Note: Type of Document - pdf; pages: 24
Contact details of provider:
Web page: http://188.8.131.52
Economic integration; total factor productivity; competitiveness; trade policy; regional growth;
Find related papers by JEL classification:
- E - Macroeconomics and Monetary Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-09-30 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.