Abstract
The process of fragmentation has led to a global reorganization of production and has conditioned, to a large extent, the insertion of countries into international trade flows. Among the factors explaining this reorganization of productive activities, those relating to transportation costs and trade barriers are of particular importance. In this context, trade agreements can play a significant role in the formation of regional production networks. This paper investigates whether the trade agreements signed under LAIA have contributed to deepening the regional integration of production. In order to do this, we analyze the trade composition by stages of production and estimate an extended version of a gravity model. The results reveal a low degree of integration of LAIA countries in both the international and regional trade of parts, components and capital goods, far below that observed in Asia, North America and Europe. Even so, LAIA agreements seem to have produced a somewhat positive influence on regional flows.
Keywords:
Trade integration; Productive integration; LAIA; Gravity model; Productive stages
