Size, Position and Length in Value Chains in Latin America

In this article, I develop a framework that divides global value chains into regional and extra-regional and studies the participation of Latin American countries in international fragmentation of production along 25 years of globalization. Measures of depth, position, and length are developed for each kind of value chain. Between 1990 and 2015 the engagement in activities related to international trade increased in every country in Latin America and the prevalent way of integration is in Extra-Regional Value Chains. While South America engages mostly in value chains as a source of value added transformed by others, Central America participates more as end of chains and Mexico switched its position to a net forward position in regional value chains. Finally, the article examines the relationship between participation and length of domestic segment of chains, finding that a deeper participation in Extra-regional Value Chains is associated with shortening of chains, but this relationship does not hold for Regional.