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Endogenous Tariff Formation: The Case of Mercosur

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Author Info
Olarreaga, Marcelo
Soloaga, Isidro

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Abstract

This paper confronts the results of the endogenous tariff literature with MERCOSUR (Mercado Comun del Sur, literally, ‘the Common Market of the Southern Cone’) evidence. It is shown that MERCOSUR’s common external tariff (CET), and member countries’ deviations from the CET and from internal free trade can be explained by sector/industry lobbying as predicted by the endogenous tariff literature. If political economy viability is a key to success, then MERCOSUR is here to stay.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1848.

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Date of creation: Mar 1998
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Handle: RePEc:cpr:ceprdp:1848

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Related research
Keywords: Customs Unions Mercosur Political Economy

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

Cited by:
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  1. Çaglar Özden & Francisco J. Parodi, 2004. "Customs Unions And Foreign Investment: Theory And Evidence From Mercosur’s Auto Industry," Working Papers Central Bank of Chile 282, Central Bank of Chile. [Downloadable!]
  2. Afontsev Serguey, 2002. "Endogenous Tariff Protection and the Level of Trade Distortions in Russia," EERC Working Paper Series 01-07e, EERC Research Network, Russia and CIS. [Downloadable!]
  3. Olarreaga, Marcelo & Soloaga, Isidro & Winters, L Alan, 1999. "What's Behind Mercosur's CET?," CEPR Discussion Papers 2310, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 2000. "The Protectionist Bias of Duty Drawbacks and the New Regionalism," CEPR Discussion Papers 2559, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Antoni Estevadeordal & Caroline Freund & Emanuel Ornelas, 2008. "Does Regionalism Affect Trade Liberalization Towards Non-Members?," CEP Discussion Papers dp0868, Centre for Economic Performance, LSE. [Downloadable!]
  6. Schiff, Maurice & Chang, Won, 2001. "Market presence, contestability, and the terms-of-trade effects of regional integration," Policy Research Working Paper Series 2532, The World Bank. [Downloadable!]
    Other versions:
  7. Carlos Carrillo & Carmen A. Li, 2002. "Trade Blocks and the Gravity Model: Evidence from Latin American Countries," Economics Discussion Papers 542, University of Essex, Department of Economics. [Downloadable!]
  8. Schiff, Maurice, 1999. "Will the real"natural trading partner"please stand up?," Policy Research Working Paper Series 2161, The World Bank. [Downloadable!]
  9. Olarreaga, Marcelo & Soloaga, Isidro & Winters, Alan, 1999. "What's behind MERCOSUR's common external tariff?," Policy Research Working Paper Series 2231, The World Bank. [Downloadable!]
  10. Giovanni Facchini; Pedro Cavalcanti Ferreira, 2004. "Trade Liberalization and Industrial Concentration:Evidence from Brazil," Econometric Society 2004 Latin American Meetings 126, Econometric Society. [Downloadable!]
    Other versions:
  11. Afontsev Serguey, 2000. "Political Economy of Tariff Protection in Russia: an Empirical Study," EERC Working Paper Series 99-16e, EERC Research Network, Russia and CIS. [Downloadable!]
  12. Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 2001. "Can duty-drawbacks have a protectionist bias?Evidence from MERCOSUR," Policy Research Working Paper Series 2523, The World Bank. [Downloadable!]
  13. Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 1999. "Asymmetric Regionalism in Sub-Saharan Africa: Where Do We Stand?," CEPR Discussion Papers 2299, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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