Competition for Export Share in American Market Between China and Major Latin American Countries: 2001–2010

Abstract

By comparing the export trade of China and Latin American countries in the new century, we are able to determine an important common export destination for China and Latin America, that is, the United States. This paper first analyzes export competition between China and major Latin American countries in the American market with the application of the trade index. Then the paper makes quantitative analysis of the market occupation of China and major Latin American countries in terms of manufactured goods by using the constant market share model. The empirical results show that, although China’s export competitiveness in the U.S. market is getting stronger and stronger, the threat to Latin American countries is not as great as what the western scholars have considered. In terms of manufactured goods, after the global financial crisis, the major countries in Latin America are faced with decreasingly intensive competition from China’s export trade; extrusion share has been reduced. The results also demonstrate that other countries have taken have China’s export share in the American market.