Mirror trade statistics between China and Latin America
| Pages | 177-189 |
| DOI | https://doi.org/10.1108/JCEFTS-10-2016-032 |
| Published date | 03 October 2016 |
| Date | 03 October 2016 |
| Author | Francisco Benita,Carlos M. Urzúa |
| Subject Matter | Economics,International economics |
Mirror trade statistics between
China and Latin America
Francisco Benita
Escuela de Ingeniería, Tecnológico de Monterrey,
Monterrey, Mexico, and
Carlos M. Urzúa
Escuela de Gobierno, Tecnológico de Monterrey, Mexico City, Mexico
Abstract
Purpose – This paper aims to examine the accuracy of the trade statistics between the People’s
Republic of China and 20 Latin American countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico,
Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.
Design/methodology/approach – This paper contrasts the mirror trade statistics between China
and 20 Latin American countries during 2009-2014, after adding to the Chinese side the trade gures
corresponding to Hong Kong and adjusting for some valuation issues. Using the resulting panel data,
the paper then explores some of the possible explanatory variables, in the case of Latin America, which
can account for the signicant trade misinvoicing that is found among most of the countries involved.
Findings – Trade misinvoicing, be that from the part of China or of its partners, varies substantially
across Latin America. It is quite large in the case of some countries such as Bolivia, Costa Rica, Mexico,
Panama and Paraguay, and, on the opposite side, relatively small in the case of other countries such as
Argentina, Brazil, Chile, Guatemala and Venezuela. It is found that, from a Latin American perspective,
trade misinvoicing is positively related to the countries’ lack of statistical capacity and their degree of
nancial openness.
Originality/value – This is the rst empirical paper that examines the mirror trade statistics between
China and Latin American.
Keywords China, Latin America, Mirror statistics, Trade misinvoicing, Statistical capacity,
Financial openness
Paper type Research paper
1. Introduction
According to the International Monetary Fund’s Direction of Trade Statistics (IMF
DOTS, IMF, 2016), trade with China varied widely in the case of the 20 Latin American
countries. Using the trade gures reported by the Latin American countries for the year
2014, if we estimate the percentage of each country’s total trade (exports plus imports)
that corresponds to trade with the People’s Republic of China, including Hong Kong
Special Administrative Region, then three groups of countries emerge. The rst is made
of two countries for which that percentage represented more than 20 per cent of their
total trade: Chile (23 per cent) and Peru (21 per cent). The next group, also with a
double-digit percentage, is made of Brazil (19 per cent), Uruguay (17 per cent), Paraguay
(16 per cent), Colombia (15 per cent), Venezuela (13 per cent), Argentina (12 per cent),
Cuba (11 per cent), Bolivia (10 per cent), Mexico (10 per cent) and Panama (10 per cent).
The nal group is composed of mostly smaller countries: Costa Rica (9 per cent),
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Mirror trade
statistics
177
Journalof Chinese Economic and
ForeignTrade Studies
Vol.9 No. 3, 2016
pp.177-189
©Emerald Group Publishing Limited
1754-4408
DOI 10.1108/JCEFTS-10-2016-032
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