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MERCOSUR-EU trade: The impact of adverse macroeconomic developments and trade barriers on MERCOSUR exports

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Author Info

  • Felicitas Nowak-Lehmann

    (Ibero-America Institute for Economic Reserach of the Universitiy of Goettingen)

  • Inmaculada Martínez-Zarzoso

Abstract

This article examines sectoral MERCOSUR exports to the EU in the period of 1988 to 1996. A sectoral study is considered indispensable since tariff and non-tariff trade barriers vary strongly among sectors. The empirical investigation is based on both a dynamic panel analysis and a rather qualitative evaluation of the extent of tariff and non-tariff barriers imposed by the EU. The ex-post analysis for the period of 1988 to 1996 revealed three things: First, a more competitive real exchange rate could contribute to a better MERCOSUR export performance. Second, EU protection has had in general a very negative impact on MERCOSUR export growth rates. Third, EU protection strongly affected MERCOSUR's largest export sectors.

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File URL: http://128.118.178.162/eps/it/papers/0310/0310002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0310002.

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Length: 26 pages
Date of creation: 07 Oct 2003
Date of revision:
Handle: RePEc:wpa:wuwpit:0310002

Note: Type of Document - Acrobat PDF; pages: 26 ; figures: included
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Web page: http://128.118.178.162

Related research

Keywords: Sectoral MERCOSUR-EU trade; dynamic panel analysis; impact of tariff and non-tariff trade barriers;

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  1. Yeats, Alexander J, 1998. "Does Mercosur's Trade Performance Raise Concerns about the Effects of Regional Trade Arrangements?," World Bank Economic Review, World Bank Group, vol. 12(1), pages 1-28, January.
  2. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2003. "Explaining MERCOSUR sectoral exports to the EU: The role of economic and geographical distance," International Trade 0309025, EconWPA.
  3. Goldstein, Morris & Khan, Mohsin S, 1978. "The Supply and Demand for Exports: A Simultaneous Approach," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 275-86, May.
  4. J. Michael Finger & Julio J. Nogués, 2002. "The Unbalanced Uruguay Round Outcome: The New Areas in Future WTO Negotiations," The World Economy, Wiley Blackwell, vol. 25(3), pages 321-340, 03.
  5. J. Michael Finger, 2001. "Implementing the Uruguay Round Agreements: Problems for Developing Countries," The World Economy, Wiley Blackwell, vol. 24(9), pages 1097-1108, 09.
  6. Diao, Xinshen & Somwaru, Agapi, 2000. "An Inquiry on General Equilibrium Effects of MERCOSUR--An Intertemporal World Model," Journal of Policy Modeling, Elsevier, vol. 22(5), pages 557-588, September.
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