Publication: Uruguay: Trade Competitiveness Diagnostic
Date
2015-10
ISSN
Published
2015-10
Author(s)
Portugal, Alberto
Reyes, Jose-Daniel
Varela, Gonzalo
Abstract
As a small economy, Uruguay’s growth and
poverty reduction prospects are closely related to its
performance in international markets. This report analyzes
export dynamics in Uruguay over the period 2000-2013,
benchmarking them against relevant comparator countries. It
looks at export outcomes through four different dimensions
of export performance: (1) the evolution, composition, and
growth orientation of the country’s export basket; (2) the
degree of diversification across products and markets; (3)
the level of sophistication and quality; and (4) the
survival rate of export relationships. The report offers a
number of hypotheses for an in-depth competitiveness
diagnostic of Uruguay’s external sector, as well as policy
recommendations to increase integration and to gain from it.
In addition to the real depreciation of the peso that
followed the crisis, the international prices of Uruguay’s
main export products soared. This stimulated investment in
technological improvements in the production of these
natural-resource-intensive products. Section one analyzes
the macroeconomic environment in which exporters operate in
Uruguay during the period of analysis. Section two looks at
level, growth, composition, and market share performance of
Uruguay’s exports, as well as the country’s main trading
destinations. Section three focuses on the diversification
of products and markets, considering several measures of
concentration, including the share of top five products and
markets in exports, and the Hirschman-Herfindahl index for
Uruguay’s export portfolio. Sections four and five address
quality and sophistication and survival, respectively.
Citation
“Portugal, Alberto; Reyes, Jose-Daniel; Varela, Gonzalo. 2015. Uruguay : Trade Competitiveness Diagnostic. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/23349 License: CC BY 3.0 IGO.”