Commercial Dynamism of the Andean Community: An Analysis of Product and Market Diversification
Muñoz A.M.C.; Carrillo S.S.R.; Gonzales A.M.; Ninaquispe J.C.M.; Escudero H.T.Z. · Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology (2024) · DOI: 10.18687/leird2024.1.1.356
Resumen
The primary objective was to describe the commercial dynamism of the Andean Community during the period 2019-2023. A quantitative approach was adopted, utilizing data from Trade Map to analyze product and market diversification, with the Herfindahl-Hirschman Index (HHI) employed as an indicator of diversification. Bolivia experienced significant growth in the export of animal fats and oils (140.63%) and prepared animal feed, although its exports of mineral fuels declined by 24.58%. China was Bolivia's main growth destination (190.35%), and its HHI showed a continuous decrease, reflecting greater market diversification. Colombia notably diversified its exports with significant growth in manufactured goods and technological services, and India was its fastest-growing market (592.20%), although the HHI showed fluctuations. Ecuador demonstrated increased diversification with agro-industrial products such as shrimp and flowers, and Panama was its fastest-growing market (133.12%), with a reduced HHI reflecting successful diversification. Peru diversified its exports with growth in sectors such as mining and agro-industry, notably copper minerals and fresh grapes, although it showed increasing concentration in markets such as China and the United States, as reflected in its HHI. The Andean Community has made progress in product and market diversification, reducing its economic vulnerability. It is recommended that Bolivia foster investment in emerging sectors, Colombia improve its logistics infrastructure, Ecuador develop special economic zones and enhance logistics infrastructure, and Peru improve port infrastructure and sign new trade agreements.
Instituciones: Universidad de San Martín de Porres