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Latin American Commodity Export Concentration: Is There a China Effect?

Author

Listed:
  • KC Fung
  • Alicia Garcia-Herrero
  • Mario Nigrinis Ospina

Abstract

Given that commodity export concentration is likely to be unhelpful for economic development, we then ask the question of whether Latin America has been experiencing a more pronounced concentration of such exports. We then use different indicators to measure such concentration. Our measurements show that there may be an increase of commodity concentration exports in the last few years of this decade. This phenomenon leads us to ask the question: is the rise of China partly responsible for such an increase? We then ran formal regressions trying to explain an index of commodity export concentration across countries and over time. We control for standard explanatory variables including the relative price index of commodities, the endowment of commodities, the income effects and the quality of infrastructure. We test our hypothesis for alternative periods and using different econometric methodologies. Our results seem to indicate that there is some evidence of the China effect, i.e. the growing importance of China is positively and significantly related to increased commodity export concentration.

Suggested Citation

  • KC Fung & Alicia Garcia-Herrero & Mario Nigrinis Ospina, 2013. "Latin American Commodity Export Concentration: Is There a China Effect?," Working Papers 1306, BBVA Bank, Economic Research Department.
  • Handle: RePEc:bbv:wpaper:1306
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    References listed on IDEAS

    as
    1. Biliana Alexandrova-Kabadjova & Alma L. Garcia-Almanza & Sara G. Castellanos Pascacio, 2012. "El proceso de adopcion de tarjetas de pago: un enfoque basado en agentes," Working Papers 1214, BBVA Bank, Economic Research Department.
    2. Mariana A. Toran & F. Javier Morales & Sara G. Castellanos, 2012. "Analysis of the Use of Financial Services by Companies in Mexico: What does the 2009 Economic Census tell us?," Working Papers 1216, BBVA Bank, Economic Research Department.
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    Citations

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    Cited by:

    1. Li, Zhigang & Yu, Xiaohua & Zeng, Yinchu & Holst, Rainer, 2012. "Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders," China Economic Review, Elsevier, vol. 23(4), pages 1003-1010.
    2. Alicia Garcia-Herrero & KC Fung & Jesus Seade, 2015. "Beyond Minerals: China-Latin American Trans-Pacific Supply Chain," Working Papers 1518, BBVA Bank, Economic Research Department.
    3. José E. Boscá & Rafael Doménech & Javier Ferri, 2013. "Fiscal Devaluations in EMU," Hacienda Pública Española, IEF, vol. 206(3), pages 27-56, September.
    4. Rafael Domenech, 2012. "Las perspectivas de la economia espanola en 2012," Working Papers 1217, BBVA Bank, Economic Research Department.
    5. Nakhoda, Aadil, 2013. "The impact of the exports of BRIC countries plus Turkey on the exports of Pakistan," MPRA Paper 52477, University Library of Munich, Germany.
    6. Bernhardt, Thomas, 2014. "How promising is South-South trade as a contributor to economic development in Asia and South America? Insights from estimating income elasticities of import demand," MPRA Paper 56413, University Library of Munich, Germany.

    More about this item

    Keywords

    Latin America de-industrialization; China economic rise; Export concentration;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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