Trade and Competitiveness in Argentina, Brazil and Chile

Not as Easy as A-B-C

image of Trade and Competitiveness in Argentina, Brazil and Chile

This book focuses on the role of exchange rate regimes, market imperfections and trade policy to support the strengthening and diversification of the tradable sector in Argentina, Brazil and Chile. Moreover, it analyses the agro-food sector, one of the pillars of the tradable sector in the region, and the role of foreign direct investment and competition policy. Overall it provides an integrated and original policy perspective on the factors underlying international competitiveness.



The Dynamics of Foreign Direct Investment and A-B-C Competitiveness

Argentina, Brazil and Chile (A-B-C) have attracted substantial amounts of FDI, but this, in contrast to Mexico, has had a limited impact on trade specialisation. In A-B-C most foreign investments were directed to primary good sectors and non-tradable infrastructure services. There was a surge in FDI inflows in the second half of the 1990s, mainly related to privatisations. There has been relatively few technologysharing by local firms, although some supply linkages have been created, as documented by case studies both in the non-tradable (e.g. retail trade) and tradable (e.g. mining) sectors. Similarly, FDI has contributed somewhat to institutional strengthening. This chapter ...


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