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Intégration économique et agglomération des activités industrielles dans le Mercosur, les enseignements d'un modèle d'économie géographique

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After ten years, the Mercosur seems to be the most successful integration process in Latin America. However, its development remains imperfect due to asymmetric situations between the countries. Brazil is the regional industrial block and the integration process would lead his partners to become captive markets and to see their domestic industrial production decrease.In order to analyze the possibility of such scenario, we adopt a New Economic Geography modelwith three regions and asymmetries. Its serves as a support to numerical simulations of trade liberalization in Mercosur. We show a redeployment of industrial activities from Brazil to Argentina, witch has the best differential of productivity, and may appear to be the new regional industrial block in the end of integration process. An empirical verification is donewith a Grubel-Lloyd indicator upon trade flows within Mercosur. It confirms largely theconclusions of the theoretical model. (Full text in French)

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Paper provided by Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV in its series Documents de travail with number 54.

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Length: 33 pages
Date of creation: Jan 2001
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Handle: RePEc:mon:ceddtr:54

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  1. Diego Puga & Tony Venables, 1995. "Preferential trading arrangements and industrial location," LSE Research Online Documents on Economics 2151, London School of Economics and Political Science, LSE Library.
  2. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  3. Rodney D. Ludema & Ian Wooton, 1998. "Regional Integration, Trade, and Migration: Are Demand Linkages Relevant in Europe?," International Trade 9802001, EconWPA.
  4. Rikard Forslid & Ian Wooton, 2003. "Comparative Advantage and the Location of Production," Review of International Economics, Wiley Blackwell, vol. 11(4), pages 588-603, 09.
  5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  6. Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
  7. Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
  8. Krugman, Paul & Venables, Anthony J., 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers 886, C.E.P.R. Discussion Papers.
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