Determinants of trade in parts and components: Latin America and East Asia

Abstract

Purpose

The purpose of this paper is to investigate what affects trade in parts and components, particularly for Latin America and East Asia.

Design/methodology/approach

The methodology includes using data analysis as well as regressions

Findings

The main findings show that logistics and infrastructure are among the most important determinants of supply chain trade. For Latin America to participate more in such trade, the region should attract more foreign direct investment, including direct investment from China in transportation, roads and ports as well as infrastructure in general.

Originality/value

This paper is among the first in the literature to conduct regression analysis on trade in parts and components.

Citation

Fung, K.C., Chen, L. and Garcia-Herrero, A. (2016), "Determinants of trade in parts and components: Latin America and East Asia", Journal of Chinese Economic and Foreign Trade Studies, Vol. 9 No. 3, pp. 245-252. https://doi.org/10.1108/JCEFTS-10-2016-035