Economic complementarity and south–south cooperation at the subnational scale: an approach to the potential integration between Formosa (Argentina) and Darién (Panama)

Abstract

This article examines economic complementarity between the provinces of Formosa (Argentina) and Darién (Panama) as a case of South–South cooperation and integration at the subnational scale, with the aim of identifying areas of productive and commercial articulation that may enable strategies for territorial internationalization. Methodologically, a descriptive–comparative design is adopted, based on document analysis and national/provincial statistical sources. Given the limitations of disaggregated data, indicators are triangulated with qualitative evidence and programmatic initiatives identified in the field. The results reveal three areas of greatest potential: (i) tourism (integrated circuits linking protected areas, cultural heritage, and anchor destinations), (ii) the food industry (including the transfer of processing capacities and public nutrition initiatives), and (iii) manufacturing/pharmaceuticals and related services (logistics, storage, and virtual education for local chains). Concrete initiatives for the exchange of goods and expertise are identified, along with logistical services from the Colón Free Trade Zone. In policy terms, mechanisms of paradiplomacy and multilevel governance are discussed to operationalize these opportunities, prioritizing low-cost, high-impact actions. The study provides a transferable framework for other subnational pairs in Latin America seeking to diversify their international integration based on complementary advantages rather than similarities.