The Commodity Composition of Export Portfolios : A Comparative Analysis of Latin America

We construct measures of export similarity among seventeen Latin American countries over the period 1962-1991. Based on cluster analyses, we analyze patterns of similarity or complementarity in the commodity composition of various countries1 export portfolios. While exports of primary products have declined in importance for Latin America, they still play a significantly large role. The scope for intra-Latin trade of dissimilar products based on comparative costs has expanded modestly in recent decades. The potential for trade of differentiated, but broadly similar, manufactures has increased among Argentina, Brazil, and Mexico, but not for intra-Latin bilateral trade involving smaller countries. This paper represents solely the professional views of the authors. It does not reflect the position of the U.S. International Trade Commission or any of its Commissioners