Intraregional Trade of the Least-Developed-Members of Latin American Integration Systems

Abstract

Differences in the degree of economic development and diversification among members of economic integration systems could easily create obstacles to economic integration, as they tend to have an impact on the distribution of costs and benefits of economic integration processes.There are several reasons why the Least Developed Members (LDMs) within integration movements in Latin America are likely to be losers in the integration processes taking place within the region. First, the economies of these countries are less diversified than those of the more advanced countries. The LDMs have manufacturing sectors which are not well developed and which are concentrated in productive branches which process natural resources. When these countries join an integration movement with countries with more advanced and diversified manufacturing sectors, they would tend to import manufactured goods which are more protected than the natural-resource-based goods which they are likely to export.