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Does economic integration increase trade margins? Empirical evidence from LAIAs countries

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  • Luis Marcelo Florensa

    ()
    (Instituto de Economía y Finanzas- Universidad Nacional de Córdoba, Córdoba, Argentina)

  • Laura Márquez-Ramos

    ()
    (Department of Economics and Instituto de Economía Internacional, Universitat Jaume I, Castellón, Spain)

  • María Luisa Recalde

    ()
    (Instituto de Economía y Finanzas- Universidad Nacional de Córdoba, Córdoba, Argentina)

  • María Victoria Barone

    ()
    (Instituto de Economía y Finanzas- Universidad Nacional de Córdoba, Córdoba, Argentina)

Abstract

This paper studies the effects of economic integration in Latin America on the margins of trade. The analysis is performed on bilateral exports of goods from eleven member countries of the Latin American Integration Association (LAIA) over the period 1962-2009. We distinguish the effects of different levels of integration on trade margins; different "timing" and different sectors. Our results provide evidence about the benefits of regional integration. Despite appearing to have contributed most to boosting exports of goods that were already exported rather than to diversification, regional trade integration is in line with LAIA members'­ development and industrialization objectives.

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Bibliographic Info

Paper provided by Economics Department, Universitat Jaume I, Castellón (Spain) in its series Working Papers with number 2014/05.

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Length: 41 pages
Date of creation: 2014
Date of revision:
Handle: RePEc:jau:wpaper:2014/05

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Keywords: Regional integration; extensive margin; intensive margin; LAIA; panel data;

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  1. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
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  7. Hillberry, Russell & Hummels, David, 2008. "Trade responses to geographic frictions: A decomposition using micro-data," European Economic Review, Elsevier, vol. 52(3), pages 527-550, April.
  8. Bensassi, Sami & Márquez-Ramos, Laura & Martínez-Zarzoso, Inmaculada, 2010. "Economic integration and the two margins of trade: the impact of the Barcelona Process on North African countries’ exports," MPRA Paper 27117, University Library of Munich, Germany.
  9. Andrew B. Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2009. "The margins of US trade," LSE Research Online Documents on Economics 33830, London School of Economics and Political Science, LSE Library.
  10. Andrew Bernard & J Bradford Jensen & Stephen Redding & Peter Schott, 2009. "The Margins of U.S. Trade (Long Version)," Working Papers 09-18, Center for Economic Studies, U.S. Census Bureau.
  11. Felicitas Nowak-Lehmann Danzinger & Dierk Herzer & Inmaculada Martinez-Zarzoso & Sebastian Vollmer, 2005. "The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU," Discussion Papers of DIW Berlin 483, DIW Berlin, German Institute for Economic Research.
  12. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
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