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The Free Trade Agreement Between Chile And The Eu: Its Potential Impact On Chile’S Export Industry

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  • NOWAK-LEHMANN D., Felicitas

    ()

  • HERZER, Dierk

    ()

  • VOLLMER, Sebastian

    ()

Abstract

Bilateral Free Trade Agreements have been used extensively by Chile to expand its exports and improve its competitive position in the world markets. It is the objective of this paper to analyze the role of trade agreements, price competitiveness, real income, per capita income differences and transport costs in Chilean export trade with the EU. To this end, Chile’s most important export sectors are investigated using panel data from Chile’s main trading partners in the EU over the period 1988-2002. The econometric model used in the simulations is a refined augmented gravity model. It is found that the FTA would strongly boost Chile’s food related exports which face high protection in the EU market.

Suggested Citation

  • NOWAK-LEHMANN D., Felicitas & HERZER, Dierk & VOLLMER, Sebastian, 2007. "The Free Trade Agreement Between Chile And The Eu: Its Potential Impact On Chile’S Export Industry," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
  • Handle: RePEc:eaa:aeinde:v:7:y:2007:i:1_9
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Maria Bas & Ivan Ledezma, 2007. "Trade integration in manufacturing: the Chilean experience," Working Papers halshs-00587677, HAL.
    2. Maria Bas & Ivan Ledezma, 2007. "Trade integration in manufacturing: the Chilean experience," PSE Working Papers halshs-00587677, HAL.
    3. repec:dau:papers:123456789/6912 is not listed on IDEAS
    4. Brieuc Monfort, 2008. "Chile; Trade Performance, Trade Liberalization, and Competitiveness," IMF Working Papers 08/128, International Monetary Fund.

    More about this item

    Keywords

    Chile-EU trade agreement; sectoral trade flows; gravity model; panel analysis.;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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