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Economic Integration and Manufacturing Concentration Patterns: Evidence from MERCOSUR

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  • Iulia Traistaru-Siedschlag
  • Christian Martincus

    ()

Abstract

Over the past two decades, Argentina, Brazil, Paraguay, and Uruguay have implemented unilateral trade liberalization programs and formed MERCOSUR. The effects of these reforms on production structures in these countries have not received a great deal of attention. This paper analyses patterns of relative manufacturing concentration in Argentina, Brazil, and Uruguay over the period 1985–1998. Our results indicate that localisation of demand and comparative advantages are the main driving forces of these patterns. The establishment of MERCOSUR has fostered the relative importance of factor endowments and production linkages in shaping the spatial distribution of manufacturing in the above three countries. Copyright Springer Science + Business Media, LLC 2006

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Bibliographic Info

Article provided by Springer in its journal Open Economies Review.

Volume (Year): 17 (2006)
Issue (Month): 3 (July)
Pages: 297-319

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Handle: RePEc:kap:openec:v:17:y:2006:i:3:p:297-319

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Web page: http://www.springerlink.com/link.asp?id=100323

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Keywords: economic integration; concentration of industries; comparative advantage; economic geography; MERCOSUR;

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Cited by:
  1. H.J. Roelfsema, 2004. "Political Institutions and Trade Protection," Working Papers 04-06, Utrecht School of Economics.
  2. Pablo Sanguinetti & Iulia Siedschlag & Christian Volpe Martincus, 2009. "The Impact of South-South Preferential Trade Agreements on Industrial Development: An Empirical Test," IDB Publications 9307, Inter-American Development Bank.

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