External Sector, Complexity and Economic Growth in Latin America

In the last forty years, Latin American economies have participated in the global shift towards the deepening of international economic relations; however, this change has not been reflected in sustained rates of economic growth. This short article aims to encourage future and deeper discussions on the type of economic policy focused on the external sector that makes sustained and sustainable economic growth possible in the Latin American region. To this end, the article highlights the characteristics of the external sector that are associated with higher rates of economic growth and points out to the recent developments in economic complexity which allow identifying the industries with the greatest potential for each region. Thereafter, the relationship between external sector structure, complexity and economic growth for a group of economies in the region is analyzed and some economic policy implications are discussed.