This paper presents an analysis of the evolution of the competitiveness in the traded goods sectors in six Latin American countries. Argentina, Bolivia, Chile, Paraguay, and Uruguay. Results for Brazil are ambiguous.

Due to the lack of Purchasing Power Parities (PPPs) at regional level, regional Gross Domestic Product (GDP) figures have been traditionally adjusted using national PPPs. The simplifying assumption that all regions of a country have the same cost of living, and implicitly that there are no...