China’s Rebalancing: Opportunities and Challenges for LAC Exporters

Asia and Latin America and the Caribbean (LAC), two regions with large growth potential, have become increasingly connected over the last 20 years. China has emerged not only as a top trading partner, but also as an important competitor of LAC exports. China’s retreat from certain markets, due to th...

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Bibliographic Details
Main Author: Aasaavari, Nitya
Other Authors: Di Vittorio, Fabio, Lariau, Ana, Li, Yuebo
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2020
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a China’s Rebalancing: Opportunities and Challenges for LAC Exporters  |c Nitya Aasaavari, Fabio Di Vittorio, Ana Lariau, Yuebo Li, Rui Mano, Pedro Rodriguez 
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300 |a 51 pages 
651 4 |a China, People's Republic of 
653 |a Real exports 
653 |a Economic Integration 
653 |a Finance 
653 |a International Trade Organizations 
653 |a Trade Policy 
653 |a Competition 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a International economics 
653 |a National accounts 
653 |a Economic Growth of Open Economies 
653 |a Models of Trade with Imperfect Competition and Scale Economies 
653 |a Financial markets 
653 |a International trade 
653 |a Exports 
653 |a Macroeconomics 
653 |a Comparative advantage 
653 |a Business and Economics 
653 |a Empirical Studies of Trade 
653 |a Imports 
653 |a Finance: General 
653 |a Neoclassical Models of Trade 
700 1 |a Di Vittorio, Fabio 
700 1 |a Lariau, Ana 
700 1 |a Li, Yuebo 
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520 |a Asia and Latin America and the Caribbean (LAC), two regions with large growth potential, have become increasingly connected over the last 20 years. China has emerged not only as a top trading partner, but also as an important competitor of LAC exports. China’s retreat from certain markets, due to the ongoing rebalancing process, could open new opportunities for LAC exporters but also entail some challenges. Our results show that China’s rebalancing will have an overall positive effect on LAC’s GDP and exports in the long run, but this effect is small and uneven across countries, leading to winners and losers. We also provide evidence that other countries, such as India, are currently trying to fill the gap left by China and could undermine LAC’s competitive advantage in some export markets. In this context, reduction of trade barriers and further integration within the region and/or with the rest of the world would lead to unequivocally positive outcomes for all LAC countries. The COVID-19 shock might exacerbate the effects identified in our analysis