Unit Price of Manufacturing Exports that Process Natural Resources From Latin America.
Abstract Lead-inWe explore the potential domestic income increase in Latin American exports following unit prices of exported products by processing stage.In various developed countries, manufacturing began through the internal processing of locally available natural resources. Currently, high-income countries participate in world trade by exporting these types of products. The objective of this paper is to demonstrate the level of sophistication of these exports by monitoring the unit price of exports of the petrochemical chain (Argentina, Brazil, Mexico, and Venezuela); copper (Chile and Peru); iron and steel (Brazil and Mexico); and soybean and its derivatives (Argentina and Brazil). We show the potential for elevating domestic income in exports by increasing manufacturing done within a country before export.JEL classification: F14, L61, L65, L66, L71, O13, Q17