Background

South America is characterized by the deindustrialization of its exports which offer limited possibilities for productive diversification. This has led to a mediocre economic and export performance, supporting a neoextractivist model.

Methodology

Given this scenario and the importance of boosting South American manufacturing exports, we will use an expanded gravitational model estimated by panel data to determine the commercial, geographical, collaborative and strategic variables that may be influencing manufacturing exports in South America (Argentina, Brazil, Chile, Paraguay, Peru, and Uruguay) during the 2001-2016 period.

Results

The export behavior in manufacturing is dynamic, with positive effects of the gross national product of the importing country, countries with common borders and countries with access to the Pacific Ocean. The regional agreement Common Market of the South (Mercosur) and the bilateral agreements of Chile with member countries of the Mercosur and the North American Free Trade Agreement (TLCAN) and China do not manage to affect this export process.

Conclusions

The regional and bilateral agreements should be conducted by strategic collaboration projects among South American countries, supported by government incentives in research, terrestrial connectivity and technological development. In addition, it is observed that Brazil and Peru are significantly enhancing their manufacturing export development, Chile and Argentina have progressively deteriorated, while Paraguay and Uruguay present a state of permanence without a clear evolution.