Title: Convergence in trade of fruits and vegetables in Latin America, 1995-2021

Authors: Rafael Perez

Addresses: Colorado Mountain College, 1275 Crawford Ave, Steamboat Springs, CO 80487, USA

Abstract: This paper tests for the convergence hypothesis in the fruits and vegetables trade (fv) of 33 Latin American and Caribbean countries (LAC33) between 1995 and 2021. Income convergence hypothesis states that in the long run, smaller countries grow at faster rates than larger countries and vice-versa. This paper computed the revealed comparative advantage (RCA) index of fv trade in LAC and tested for convergence in this index. Taking a visual approach, the paper tested for sigma convergence. In addition, it applied a parametric approach using cross-sectional regression to estimate the β-convergence rate. As results for the cross-sectional regression model presented a low level of explanatory power, the paper tested for club convergence using a sample of 107 countries, encompassing 27 LAC counties. Club-convergence results suggest that there are two convergence groups in the countries' sample. Club 1 includes 16 LAC countries and club 2 contains 11 LAC countries.

Keywords: convergence; revealed comparative advantage index; fruits and vegetables sector; international trade policy; clusters.

DOI: 10.1504/LAJMSD.2024.141376

Latin American Journal of Management for Sustainable Development, 2024 Vol.6 No.3, pp.224 - 246

Received: 15 Dec 2023
Accepted: 20 May 2024
Published online: 09 Sep 2024 *

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