Trade specialization in Latin America: The impact of China and India

Daniel Lederman; Marcelo Olarreaga; Eliana Rubiano

doi:10.1007/s10290-008-0146-z

Trade specialization in Latin America: The impact of China and India

Daniel Lederman, Marcelo Olarreaga, Eliana Rubiano

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines the extent to which the growth of China and India in world markets is affecting the patterns of trade specialization in Latin American (LA) economies. We construct a measure of Revealed Comparative Advantage (RCA) by 3-digit ISIC sector, country, and year. This RCA accounts for both imports and exports. The empirical analyses explore the correlation between the RCAs of LA and the two Asian economies. Econometric estimates suggest that the specialization pattern of LA-with the exception of Mexico-has been moving in opposite direction to the trade specialization pattern of China and India. Labor-intensive sectors (both unskilled and skilled) probably have been negatively affected by the growing presence of China and India in world markets, while natural resource and scientific knowledge intensive sectors have probably benefited from China and India's growth since 1990.

Original language	English
Pages (from-to)	248-271
Number of pages	24
Journal	Review of World Economics
Volume	144
Issue number	2
DOIs	https://doi.org/10.1007/s10290-008-0146-z
State	Published - Apr 2008
Externally published	Yes

Keywords

China
Comparative advantage
India
Latin America

ASJC Scopus subject areas

General Economics, Econometrics and Finance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s10290-008-0146-z

Cite this

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abstract = "This paper examines the extent to which the growth of China and India in world markets is affecting the patterns of trade specialization in Latin American (LA) economies. We construct a measure of Revealed Comparative Advantage (RCA) by 3-digit ISIC sector, country, and year. This RCA accounts for both imports and exports. The empirical analyses explore the correlation between the RCAs of LA and the two Asian economies. Econometric estimates suggest that the specialization pattern of LA-with the exception of Mexico-has been moving in opposite direction to the trade specialization pattern of China and India. Labor-intensive sectors (both unskilled and skilled) probably have been negatively affected by the growing presence of China and India in world markets, while natural resource and scientific knowledge intensive sectors have probably benefited from China and India's growth since 1990.",

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T2 - The impact of China and India

AU - Lederman, Daniel

AU - Olarreaga, Marcelo

AU - Rubiano, Eliana

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AB - This paper examines the extent to which the growth of China and India in world markets is affecting the patterns of trade specialization in Latin American (LA) economies. We construct a measure of Revealed Comparative Advantage (RCA) by 3-digit ISIC sector, country, and year. This RCA accounts for both imports and exports. The empirical analyses explore the correlation between the RCAs of LA and the two Asian economies. Econometric estimates suggest that the specialization pattern of LA-with the exception of Mexico-has been moving in opposite direction to the trade specialization pattern of China and India. Labor-intensive sectors (both unskilled and skilled) probably have been negatively affected by the growing presence of China and India in world markets, while natural resource and scientific knowledge intensive sectors have probably benefited from China and India's growth since 1990.

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Trade specialization in Latin America: The impact of China and India

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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