China’s effect on Latin America’s international trade

  • Claudio E. Montenegro Development Research Group, Poverty & Inequality, 2013 World Development Report, 1818 H St. (room G3-488), Washington D.C. 20433 - USA and Universidad de Chile, Economics Department
  • Mariana Pereira Centro de Estudios Económicos, El Colegio de México, Camino al Ajusco 20 Col. Pedregal de Sta. Teresa 10740, Ciudad de México
  • Isidro Soloaga Centro de Estudios Económicos, El Colegio de México, Camino al Ajusco 20 Col. Pedregal de Sta. Teresa 10740, Ciudad de México

Abstract

Using a gravity model, this article presents an analysis of aggregate trade flows aimed at identifying China’s impact on Latin America’s trade. The results obtained indicate that: i) China´s growth in the last years implied a growing supply of exports to this market from most countries in the World, including that of Latin American countries; ii) at the aggregate level, there was no indication that Chinese exports to third markets were crowding out LAC exports to those countries; and iii) a positive relationship between imports from China and exports to third markets was only found for the Southern Cone countries.
Keywords Bilateral trade, Gravity model, Poisson regression, China, Latin America
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How to Cite
Montenegro, C., Pereira, M., & Soloaga, I. (2016). China’s effect on Latin America’s international trade. Estudios de Economía, 38(2), pp. 341-368. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/39439/43341
Section
Articles
Published
2016-03-31