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Does economic integration increase trade margins? Empirical evidence from LAIAs countries

  • Luis Marcelo Florensa

    ()

    (Instituto de Economía y Finanzas- Universidad Nacional de Córdoba, Córdoba, Argentina)

  • Laura Márquez-Ramos

    ()

    (Department of Economics and Instituto de Economía Internacional, Universitat Jaume I, Castellón, Spain)

  • María Luisa Recalde

    ()

    (Instituto de Economía y Finanzas- Universidad Nacional de Córdoba, Córdoba, Argentina)

  • María Victoria Barone

    ()

    (Instituto de Economía y Finanzas- Universidad Nacional de Córdoba, Córdoba, Argentina)

This paper studies the effects of economic integration in Latin America on the margins of trade. The analysis is performed on bilateral exports of goods from eleven member countries of the Latin American Integration Association (LAIA) over the period 1962-2009. We distinguish the effects of different levels of integration on trade margins; different "timing" and different sectors. Our results provide evidence about the benefits of regional integration. Despite appearing to have contributed most to boosting exports of goods that were already exported rather than to diversification, regional trade integration is in line with LAIA members'­ development and industrialization objectives.

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Paper provided by Economics Department, Universitat Jaume I, Castellón (Spain) in its series Working Papers with number 2014/05.

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Length: 41 pages
Date of creation: 2014
Date of revision:
Handle: RePEc:jau:wpaper:2014/05
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  1. Felicitas Nowak-Lehmann Danzinger & Dierk Herzer & Inmaculada Martinez-Zarzoso & Sebastian Vollmer, 2005. "The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU," Discussion Papers of DIW Berlin 483, DIW Berlin, German Institute for Economic Research.
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  7. Sami Bensassi & Laura M�rquez-Ramos & Inmaculada Mart�nez-Zarzoso, 2012. "Economic Integration and the Two Margins of Trade: The Impact of the Barcelona Process on North African Countries' Exports," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(2), pages 228-265, March.
  8. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2009. "The Margins of U.S. Trade (Long Version)," NBER Working Papers 14662, National Bureau of Economic Research, Inc.
  9. Martínez-Zarzoso, Inmaculada & Felicitas, Nowak-Lehmann D. & Horsewood, Nicholas, 2009. "Are regional trading agreements beneficial?: Static and dynamic panel gravity models," The North American Journal of Economics and Finance, Elsevier, vol. 20(1), pages 46-65, March.
  10. Russell Hillberry & Christine McDaniel, 2003. "A Decomposition of North American Trade Growth since NAFTA," International Trade 0303003, EconWPA.
  11. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
  12. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  13. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
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