This paper focuses on the effects of two regional integration agreements in Latin America (LA), namely

the Latin American Integration Association and the Southern Common Market. The main objective is to

analyse the effect of regionalism on production networks in the region. Previous research has focused on

other integration agreements, such as the European Union or the North American Free Trade Area.

However, as far as the authors are aware, this is the first paper that addresses the relationship between

product integration networks and the ongoing regional integration process of Latin American countries.

The paper tests two main hypotheses, on the one hand, whether LA countries have become more

integrated into regional production networks and on the other hand, whether the effect of LA agreements

may have production relocation consequences. Contrary to the higher level of production integration

apparent in LA countries due to growth in trade in intermediate goods, the results of this paper point

towards a downward trend in LA production networks.