Specialization and Market Penetration of Bilateral Trade between Peru and United States: An Exploratory Analysis

This paper aims to investigate the dynamics of bilateral trade, specialization and export market penetration of Peru's trade with the United States of America. This research explored Peru's potentials in export market penetration with the United States for 16 industry sectors. The paper also applied the Export Intensity, Import Intensity, Trade Intensity and Revealed Comparative Advantage (RCA) indices by analyzing data from 1992 to 2017 of 16 industry sectors (HS2 digits classification) of Peru's trade with the United States. The investigation over the trading relationship between the two countries in the mentioned indexes revealed the status of specialization and market penetration of Peru for its 16-industry sector's trade with the United States. The results stated several measures and policy implications to be implemented for improving the specialization of the mentioned sectors of Peru's trade with the United States as well as it will contribute to the academic literature in this area. Key Words: Sectorial Analysis, Export Specialization, Market Penetration, Peru, The United States JEL Classification: F12, F13, F14, O24 DOI: 10.7176/JESD/12-12-11 Publication date: June 30 th 2021