International Trade and Economic Development in Latin America

A special issue of Economies (ISSN 2227-7099). This special issue belongs to the section "International, Regional, and Transportation Economics".

Deadline for manuscript submissions: 31 July 2025 | Viewed by 1259

Special Issue Editor


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Guest Editor
Hankamer School of Business, Baylor University, Waco, TX 76798, USA
Interests: international trade; development economics; labor economics; public finance; international macro and finance; Latin America
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Special Issue Information

Dear Colleagues,

Since the 1980s, many Latin American countries have progressively opened up their economies to international trade in goods, services, and factors of production. A common justification for this shift in development strategy from an import-substitution towards a more open and integrated economy was to foster economic development. Since then, Latin American countries have had a diverse experience in terms of economic growth and development. For this Special Issue of Economies, we welcome the submission of any topic related to the international trade and economic development of Latin America. Topics of interest for this Special Issue include, but are not limited to, the following: international trade and its links to economic growth, informal economy, labor productivity, poverty, public finance, returns to human capital and/or skills, and social development.

Dr. Lourenco Paz
Guest Editor

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Keywords

  • Latin America
  • international trade
  • economic integration
  • economic growth
  • economic development

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Published Papers (1 paper)

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Research

22 pages, 1968 KiB  
Article
The Impact of the Pacific Alliance on Trade Creation and Trade Diversion in the COVID-19 Period: A Robust Econometric Analysis
by Edinson Delgado-Martínez
Economies 2024, 12(12), 334; https://doi.org/10.3390/economies12120334 - 6 Dec 2024
Viewed by 892
Abstract
(1) Background: The COVID-19 pandemic severely disrupted global trade, posing challenges for regional trade agreements such as the Pacific Alliance, comprising Chile, Colombia, Mexico, and Peru. This study investigates the Pacific Alliance’s impact on trade creation and diversion during the pandemic, exploring how [...] Read more.
(1) Background: The COVID-19 pandemic severely disrupted global trade, posing challenges for regional trade agreements such as the Pacific Alliance, comprising Chile, Colombia, Mexico, and Peru. This study investigates the Pacific Alliance’s impact on trade creation and diversion during the pandemic, exploring how regional cooperation mitigated trade disruptions. (2) Methods: A quantitative approach utilizing econometric models, including ordinary least squares, Poisson pseudo-maximum likelihood, and the Heckman selection model, was employed. The gravity model of trade was applied to bilateral trade data from 1948 to 2021, incorporating COVID-19-specific variables to assess trade dynamics. (3) Results: The analysis revealed significant trade creation within the Pacific Alliance during the pandemic, with intra-bloc trade strengthening despite global disruptions. However, evidence of trade diversion from non-member countries was mixed and inconclusive. (4) Conclusions: The Pacific Alliance demonstrated resilience during the COVID-19 period, fostering regional trade creation and cushioning the impact of global trade shocks. While trade diversion remains uncertain, the study highlights the critical role of regional trade agreements in stabilizing trade flows during global crises, offering valuable insights for future policy and regional cooperation strategies. Full article
(This article belongs to the Special Issue International Trade and Economic Development in Latin America)
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