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Trade Blocks and the Gravity Model: Evidence from Latin American Countries

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  • Carrillo-Tudela, Carlos

    ()
    (University of Essex, UK)

  • A Li, Carmen

    (University of Essex, UK)

Abstract

We apply the gravity model to examine the effects of the Andean Community and Mercosur on both intra-regional and intra-industrial trade in the period 1980- 1997. After accounting for size distance and competitiveness effects, the Andean Community preferential trade agreements had a significant effect on the reference products but only a marginal effect on the differentiated products, in particular capital-intensive goods. Mercosur preferential trade agreements had a significant positive effect only on the capital-intensive subcategory of the reference products.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 19 (2004)
Issue (Month): ()
Pages: 667-689

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Handle: RePEc:ris:integr:0284

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Web page: http://econo.sejong.ac.kr/
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Keywords: gravity model; bilateral trade; trade blocks; Andean Community and Mercosur;

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References

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  1. Krugman, Paul & Venables, Anthony J., 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
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  8. Robert C. Feenstra & James R. Markusen & Andrew K. Rose, 2001. "Using the gravity equation to differentiate among alternative theories of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 430-447, May.
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  10. Peter A. Petri, 1993. "The East Asian Trading Bloc: An Analytical History," NBER Chapters, in: Regionalism and Rivalry: Japan and the United States in Pacific Asia, pages 21-52 National Bureau of Economic Research, Inc.
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Cited by:
  1. Endo, Nobuaki, 2007. "International trade in air transport services: Penetration of foreign airlines into Japan under the bilateral aviation policies of the US and Japan," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 285-292.
  2. Yeboah, Osei-Agyeman & Parker, S. Janine, 2009. "Impact of Expanded United States Sugar Imports from CAFTA Countries on the Ethanol Market," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46027, Southern Agricultural Economics Association.
  3. Vlontzos, George N. & Duquenne, Marie-Noelle, 2007. "Evolution of trade flows for sheep milk cheese: an empirical model for Greece," 105th Seminar, March 8-10, 2007, Bologna, Italy 7884, European Association of Agricultural Economists.
  4. Konchyn, Vadym, 2006. "The Evolution of Ukrainian Economy: New Trade Theory Evidence," MPRA Paper 588, University Library of Munich, Germany, revised 07 Sep 2006.
  5. Rojas, Gina E. Acosta & Calfat, Germán & Flôres Junior, Renato Galvão, 2005. "Trade and Infrastructure: evidences from the Andean Community," Economics Working Papers (Ensaios Economicos da EPGE) 580, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  6. Nazia Gul & Hafiz M. Yasin, 2011. "The Trade Potential of Pakistan: An Application of the Gravity Model," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(1), pages 23-62, Jan-Jun.
  7. Buys, Piet & Deichmann, Uwe & Wheeler, David, 2006. "Road network upgrading and overland trade expansion in Sub-Saharan Africa," Policy Research Working Paper Series 4097, The World Bank.
  8. Paul Hallwood & Ian W. Marsh & Joerg Scheibe, 2004. "An Assessment of the Case for Monetary Union or Official Dollarization in Argentina, Brazil, Chile, Uruguay and Venezuela," Working papers 2004-13, University of Connecticut, Department of Economics.
  9. Emmanuel Letouzé & Mark Purser & Francisco Rodríguez & Matthew Cummins, 2009. "Revisiting the Migration-Development Nexus: A Gravity Model Approach," Human Development Research Papers (2009 to present) HDRP-2009-44, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Oct 2009.
  10. Hallwood, Paul & Marsh, Ian W. & Scheibe, Jorg, 2006. "An assessment of the case for monetary union or official dollarization in five Latin American countries," Emerging Markets Review, Elsevier, vol. 7(1), pages 52-66, March.
  11. Cardamone, Paola, 2007. "A survey of the assessments of the effectiveness of Preferential Trade Agreements using gravity models," Working Papers 7282, TRADEAG - Agricultural Trade Agreements.
  12. Cortes, Maria, 2007. "Composition of Trade between Australia and Latin America: Gravity Model," Economics Working Papers wp07-19, School of Economics, University of Wollongong, NSW, Australia.

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