The development of the tradable sector is a permanent concern for policy makers in Argentina, Brazil and Chile. The OECD has published Trade and Competitiveness in Argentina, Brazil and Chile: Not as Easy as A-B-C to help explain the market mechanisms and policy interactions that support the strengthening and diversification of the tradable sector in these countries. Proceeds from an OECD Seminar on this topic are also available below. For more on how to obtain this publication, click here.
Executive summary (also available in Spanish)
The conclusions of the main economic challenges are available by clicking on each chapter heading below:
The impact of exchange rate regimes on real exchange rates in South America, 1990-2002
Fixed exchange rate regimes and portfolio inflows distorted relative prices of tradables vs. non-tradables in A-B and Mexico but not in Chile. Price distortions modified the allocation of resources between the two sectors.
How market imperfections and trade barriers shape specialisation: South America vs. OECD
The development of the tradable sector in A-B-C has been hindered by endogenous market barriers and trade policy. By contrast, Ireland, Mexico and Korea have benefited from regional trade integration and FDI, which contributed to rapid export growth and an overhaul of their trade specialisation.
The dynamics of foreign direct investment and A-B-C competitiveness
A-B-C have attracted substantial amounts of FDI, but this, in contrast to Mexico, has had a limited impact on trade specialisation. How can framework conditions be improved to attract more FDI and how can more synergies between multinationals and local firms be achieved?
International competitiveness of the A-B-C agro-food sector
The agro-food sector plays a key role in GDP, employment, and in particular, exports in A-B-C. These countries still have a large potential to expand both volumes and in particular the product range, but domestic constraints need to be addressed and more foreign investment is needed.
Competition policies and competitiveness - A view from the literature and the case of Argentina
Competition policy in non-tradables has positive spillovers for international competitiveness. Argentina is singled out here as a case study, where competition policy moved from resolving private claims of anti-competitive behaviour to competition advocacy in regulatory reforms of non-tradable sectors.
The Seminar, 22 November 2004, Paris, France
- Summary of Discussion of OECD Seminar (pdf file)
The complete edition of Trade and Competitiveness in Argentina, Brazil and Chile is available from: