South-South Regional Integration and Industrial Growth : The Case of the Andean Pact

South-South Regional Integration and Industrial Growth : The Case of the Andean Pact

Has the revival of the Andean Pact affected the industrial growth of Bolivia, Colombia, and Ecuador? Has this regional agreement had greater effects tha unilateral liberalization? The author explores two potential channels for industrial growth: sc...

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Bibliographic Details
Main Author: Madani, Dorsati H.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AGGREGATE ANALYSIS
ANDEAN PACT
BUSINESS CYCLE
CAPITAL STOCK
COAL
CONSTANT RETURNS TO SCALE
COST MINIMIZATION
DEBT
DEVELOPED COUNTRIES
DEVELOPMENT ECONOMICS
DOMESTIC INDUSTRIES
DOMESTIC INDUSTRY
ECONOMIC COOPERATION
ECONOMIES OF SCALE
ELASTICITY
ELASTICITY OF SUBSTITUTION
EMPIRICAL ANALYSIS
EMPIRICAL STUDIES
ENDOGENOUS VARIABLES
EXCHANGE RATES
EXERCISES
EXPLOITATION
EXPORTS
EXTERNALITY
FINAL GOODS
FOREIGN COMPETITION
FOREIGN DIRECT INVESTMENT
FREE TRADE
GROSS OUTPUT
GROWTH RATE
GROWTH THEORY
HUMAN CAPITAL
IMPACT OF TRADE
IMPACT OF TRADE LIBERALIZATION
IMPERFECT COMPETITION
IMPORT PRICES
IMPORTS
INCREASING RETURNS
INDUSTRIAL PRODUCTION
INDUSTRIALIZATION
INNOVATION
INPUT-OUTPUT TABLES
INTERMEDIATE GOODS
INTERMEDIATE IMPORTS
INTERMEDIATE INPUTS
LABOR PRODUCTIVITY
LIBERALIZATION OF TRADE
MEASURES OF INTEGRATION
METALS
NATIONAL MARKET
OIL
PATTERNS
POSITIVE EFFECTS
POSITIVE EXTERNALITIES
PRICE INDEX
PRODUCTION EFFICIENCY
PRODUCTION FUNCTION
PRODUCTION PROCESS
PRODUCTIVITY
PRODUCTIVITY GROWTH
REDUNDANCY
REGIONAL INTEGRATION
REGIONAL TRADE
REGIONALISM
RETURNS TO SCALE
SCALE EFFECT
SCALE EFFECTS
SPECIALIZATION
TARIFF BARRIERS
TARIFF RATE
TARIFF RATES
TARIFF REDUCTION
TECHNOLOGICAL PROGRESS
TECHNOLOGY TRANSFER
TIME SERIES
TOTAL FACTOR PRODUCTIVITY
TRADE
TRADE DATA
TRADE DIVERSION
TRADE EFFECT
TRADE FLOWS
TRADE LIBERALIZATION
TRADE PATTERN
TRADE VOLUMES
UNILATERAL LIBERALIZATION
VALUE ADDED
WAGES
WORKERS
Online Access:http://documents.worldbank.org/curated/en/2001/06/1346407/south-south-regional-integration-industrial-growth-case-andean-pact
http://hdl.handle.net/10986/19599
Description
Summary:Has the revival of the Andean Pact affected the industrial growth of Bolivia, Colombia, and Ecuador? Has this regional agreement had greater effects tha unilateral liberalization? The author explores two potential channels for industrial growth: scale effects and variety of imported intermediate inputs. She analyzes data from 2 countries (classified at the three-digit level of ISIC) across three countries. The results show that: 10 The variety of intermediate inputs originating from nonregional partners has a significant positive impact on growth in a handful of industries. 2) The effect of regional variety is at best mixed. This lends preliminary support to the argument that unilateral liberalization will have a positive impact on output growth through the channel of imported intermediate inputs. There is significant homogeneity in industry-level returns to scale. Moreover, in the three Andean countries studied, cross-country scale effects were small and negative. Therefore, the three countries should not expect large or across-the-board gains through scale effects from their regional arrangement.

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