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Trade Integration in Manufacturing : The Chilean Experience

  • Bas, Maria
  • Ledezma, Ivan

Using bilateral trade flow data from 1979 to 1999, we estimate trade integration between Chile and its principal trading partners during the period (European Union, United States and Latin America). Our estimates are based on a gravity speci cation, theoretically grounded on a monopolistic competition framework with increasing returns. Trade barriers are measured following the border e ect methodology by comparing inter-national imports to intra-national ones. Our results are consistent with the agenda of trade integration followed by Chile. Moreover, trade integration turns out to be heterogeneous across industries and over the time. We also fi nd asymmetries between export and import oriented policies. All these features are usually missing when one uses direct measures of trade policies.

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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/6912.

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Date of creation: 2009
Date of revision:
Publication status: Published in The EU and emerging markets, . pp. 167-186.Length: 19 pages
Handle: RePEc:dau:papers:123456789/6912
Contact details of provider: Web page: http://www.dauphine.fr/en/welcome.html

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  1. Felicitas Nowak-Lehmann D. & Dierk Herzer & Sebastian Vollmer, 2005. "The Free Trade Agreement between Chile and the EU: Its Potential Impact on Chile´s Export Industry," Ibero America Institute for Econ. Research (IAI) Discussion Papers 125, Ibero-America Institute for Economic Research.
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  3. Jon D. Haveman & Usha Nair-Reichert & Jerry G. Thursby, 2003. "How Effective are Trade Barriers? An Empirical Analysis of Trade Reduction, Diversion, and Compression," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 480-485, May.
  4. Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," Working Papers 2004-04, CEPII research center.
  5. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc.
  6. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  7. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," CEP Discussion Papers dp0495, Centre for Economic Performance, LSE.
  8. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc.
  9. repec:spo:wpecon:info:hdl:2441/10189 is not listed on IDEAS
  10. Harrigan, James, 1996. "Openness to trade in manufactures in the OECD," Journal of International Economics, Elsevier, vol. 40(1-2), pages 23-39, February.
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