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Export Diversification Dynamics in Latin America


  • Chanci, David


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

Suggested Citation

  • Chanci, David, 2012. "Export Diversification Dynamics in Latin America," MPRA Paper 44241, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:44241

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    References listed on IDEAS

    1. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2011. "Export Diversification: What's behind the Hump?," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 590-605, May.
    2. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
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    More about this item


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

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade


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