TY - JOUR
T1 - Comercio Internacional e Innovación
T2 - Profundizando en el Comercio Latinoamericano
AU - Vallina-Hernandez, Ana María
AU - DE LA FUENTE MELLA, HANNS ANIBAL
AU - Fuentes-Solís, Rodrigo
N1 - Publisher Copyright:
© 2020, Emerald Publishing Limited.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/11/6
Y1 - 2020/11/6
N2 - Purpose: The purpose of this paper is to compare and contrast the international trade characteristics of commerce between Latin American countries and some of the top economies in the world, in order to identify new business opportunities for LATAM firms in dynamical external markets. Design/methodology/approach: A triple indexed gravity model, correcting with robust standardized errors clustered, and a panel data analysis was used to obtain the relationship between Latin American countries and advanced and other emerging economies. Findings: The main finding of this paper is that innovation overcomes gravity effects and parameters typical of a knowledge society are the significant ones to explain trade among different regions. The model that includes an innovation proxy accommodates with the new international theories of trade. Besides, communication capacity is essential to reach consumers abroad with newer and more complex products. Moreover, the constant is significant when innovation is included, which may imply intersectoral trade that behaves relatively stable in bilateral trade. Practical implications: The findings suggest that the economies that have some relevance in trade, have increasing numbers regarding patents. Thus, the empirical findings relate to the theoretical models which state that comparative advantages may be dynamic due to technological innovation. Originality/value: This paper shows that innovation is a central parameter to engage in intratrade and develop a knowledge-based economy. Latin America sometimes appears to be a puzzle as to how to improve its economic performance and overcome its social and economic problems. Intratrade seems to be the route to increase Latin American business participation in world trade.
AB - Purpose: The purpose of this paper is to compare and contrast the international trade characteristics of commerce between Latin American countries and some of the top economies in the world, in order to identify new business opportunities for LATAM firms in dynamical external markets. Design/methodology/approach: A triple indexed gravity model, correcting with robust standardized errors clustered, and a panel data analysis was used to obtain the relationship between Latin American countries and advanced and other emerging economies. Findings: The main finding of this paper is that innovation overcomes gravity effects and parameters typical of a knowledge society are the significant ones to explain trade among different regions. The model that includes an innovation proxy accommodates with the new international theories of trade. Besides, communication capacity is essential to reach consumers abroad with newer and more complex products. Moreover, the constant is significant when innovation is included, which may imply intersectoral trade that behaves relatively stable in bilateral trade. Practical implications: The findings suggest that the economies that have some relevance in trade, have increasing numbers regarding patents. Thus, the empirical findings relate to the theoretical models which state that comparative advantages may be dynamic due to technological innovation. Originality/value: This paper shows that innovation is a central parameter to engage in intratrade and develop a knowledge-based economy. Latin America sometimes appears to be a puzzle as to how to improve its economic performance and overcome its social and economic problems. Intratrade seems to be the route to increase Latin American business participation in world trade.
KW - Gravity model
KW - Innovation
KW - International trade
KW - Latin American
KW - Patent
UR - http://www.scopus.com/inward/record.url?scp=85096625492&partnerID=8YFLogxK
U2 - 10.1108/ARLA-07-2020-0174
DO - 10.1108/ARLA-07-2020-0174
M3 - Article
AN - SCOPUS:85096625492
VL - 33
SP - 535
EP - 547
JO - Academia Revista Latinoamericana de Administracion
JF - Academia Revista Latinoamericana de Administracion
SN - 1012-8255
IS - 3-4
ER -