| Abstract: |
The paper compares the Argentine specialization model with that of the other
major Latin American countries. Given the lack of production data at
disaggregate level, we rely on trade flow information from the WTA Statistics
Canada database (3-digit SITC classification), available for most Latin
American countries for a rather long time span (1980-2000). Our analysis,
based on the Lafay Index of international specialization, shows that Argentina
concentrates its comparative advantages in raw materials, agricultural and
food products and exhibits, at the same time, serious deficiencies in the
production of manufactures. This specialization pattern has remained
remarkably stable over the last two decades, in spite of the major reforms
implemented in many different fields. These features are shared with the other
major Latin American countries, with the notable exception of Mexico, whose
comparative advantages have changed dramatically in the same period, from raw
materials (essentially oil) towards manufactures. Moreover, the products in
which Argentina is specialized are among those for which world demand growth
is structurally lower; this could eventually lead to a decreasing weight of
Argentina in international markets. |