Complexity and Productive Structure in Latin America: A Network Analysis of Trade Patterns

Calzada, BCO and Spinola, Danilo (2022) Complexity and Productive Structure in Latin America: A Network Analysis of Trade Patterns. Working Paper 16. Centre for Applied Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University. (Unpublished)

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Abstract

While plenty of existing literature focuses on Latin America’s trade relations with key partners, i.e. the US and China, and on its insertion into global value chains, intra-regional trade networks remain understudied. In this paper, we contribute to the understanding of the latter by looking at trade patterns in the region, focusing on how balanced and unbalanced trade occurs among Latin American countries and selected trade partners. We first develop an Index of Modern Balanced Trade (IMBT) that identifies balanced trade relations based on the share of complex goods that is exported and imported among two countries using data from the Observatory of Economic Complexity (Hausmann & Hidalgo, 2014). Based on the IMBT, we then build two types of networks (Balanced and Unbalanced Trade Networks) in three different years that represent specific moments in Latin American economic history. We find that, as expected, most Latin American countries’ relations with partners outside the region remain largely unbalanced. However, our results also show that the Balanced Trade Network within the region has steadily expanded.

Item Type: Monograph (Working Paper)
Identification Number: 16
Dates:
DateEvent
10 January 2022Published
Uncontrolled Keywords: Latin America, Trade Integration, Network Analysis, Economic Complexity.
Subjects: CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Centre for Applied Finance and Economics
Depositing User: Danilo Sartorello Spinola
Date Deposited: 10 Jan 2022 15:21
Last Modified: 10 Jan 2022 15:21
URI: http://www.open-access.bcu.ac.uk/id/eprint/12632

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