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Would MERCOSUR’s Exports to the EU Profit from Trade Liberalisation? Some General Insights and a Simulation Study for Argentina

In this study, MERCOSUR\'s past exports to the EU under the protectionist environment of the period between 1988 and 1996 are examined and an attempt is made to determine MERCOSUR\'s exports\' growth potential in a liberalised EU market. A sectoral study is considered indispensable since tariff and non-tariff trade barriers vary strongly among sectors. The influence of the macroeconomic environment on MERCOSUR\'s exports is examined in a dynamic panel analysis. A simulation study based on a quite comprehensive evaluation of EU trade barriers is performed for the Argentinean case in order to evaluate the impact of EU trade liberalisation.

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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 092.

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Length: 31
Date of creation: 01 May 2003
Date of revision:
Handle: RePEc:got:iaidps:092
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  1. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2003. "Augmented gravity model: An empirical application to Mercosur- European trade flows," International Trade 0309019, EconWPA.
  2. J. Michael Finger & Julio J. Nogués, 2005. "The Unbalanced Uruguay Round Outcome: The New Areas in Future WTO Negotiations," International Trade 0502010, EconWPA.
  3. Boozer, Michael A., 1997. "Econometric Analysis of Panel Data Badi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October.
  4. 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.
  5. 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.
  6. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 291-316, November.
  7. 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.
  8. Arvind Panagariya, 1996. "The Free Trade Area of the Americas: Good for Latin America?," The World Economy, Wiley Blackwell, vol. 19(5), pages 485-515, 09.
  9. 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.
  10. Rainer Schweickert, 2001. "Macroeconomic Constraints on Economic Development and Poverty Reduction: The Case of Bolivia," Kiel Working Papers 1060, Kiel Institute for the World Economy.
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