Latin American Export Specialization in Resource-Based Products: Implications for Growth
Author(s)
Chami Batista, Jorge
Abstract
Given Latin America’s general specialization in resource-based products, this paper focuses on the question of whether or not a country specialized in resource-based products can have high rates of export and economic growth. To examine this question, an attempt is made to develop and apply a new taxonomy to a sample of resource-based products exported by Latin American countries to the United States. This taxonomy is based on the role played by prices in the mechanism through which countries compete in specific international product markets. Resource-based products are then classified as homogeneous, differentiated, or highly differentiated goods. The paper argues that exports of countries specialized in differentiated or highly differentiated goods tend to be much more dynamic than of those specialized in homogeneous goods.
