Specialization and Adjustment during the Growth of China and India : The Latin American Experience
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 economies. The authors construct Vollrath's measure of revealed comparative advantage by...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/08/8091802/specialization-adjustment-during-growth-china-india-latin-american-experience http://hdl.handle.net/10986/7262 |
| Summary: | 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
economies. The authors construct Vollrath's measure of
revealed comparative advantage by 3-digit ISIC sector,
country, and year. This measure accounts for both imports
and exports. The empirical analyses explore the correlation
between the revealed comparative advantage of Latin America
and the two Asian economies. Econometric estimates suggest
that the specialization pattern of Latin A-with the
exception of Mexico-has been moving in opposite direction of
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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