Abstract

ROITBARG, Hernán Alejandro. Chains and Latin American Functional Specialization. Evidence on Productive Integration in the 21^th Century. Ens. Econ. [online]. 2022, vol.32, n.61, pp.152-174.  Epub Mar 22, 2023. ISSN 0121-117X.  https://doi.org/10.15446/ede.v32n61.100943.

This article analyses how Latin America fits into global and regional production chains based on functional specialization. A database on income by occupation has been constructed and harmonized for seven nations in the region in order to conduct the analysis. A multi-country input-output approach was used in the methodology. The findings point to a manufacturing specialization profile based primarily on manufacturing tasks. The rare situations are focused in Brazil and Mexico, these countries are also involved in management and research and development. The findings imply that the general insertion of Latin America through trade agreements does not pose a different specialization profile. However, regional insertion had slightly positive effects, limited in magnitude and concentrated in the main economies of the region. To achieve better results, the challenge is to coordinate policies that promote the growth of intra-regional demand with policies that guide agglomeration economies, for the purpose of a more equitable distribution of participation in the productive stages and derived income.

JEL: F14; F59; O18; O54.

Keywords : global value chains; integration; trade in tasks; functional specialization; Latin America; labor occupations.

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