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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Luis Marcelo Florensa & Laura Márquez-Ramos & María Luisa Recalde & María Victoria Barone, 2014. "Does economic integration increase trade margins? Empirical evidence from LAIAs countries," Working Papers 2014/05, Economics Department, Universitat Jaume I, Castellón (Spain).
  • Handle: RePEc:jau:wpaper:2014/05
    as

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    References listed on IDEAS

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    5. Sami Bensassi & Laura Márquez-Ramos & Inmaculada Martínez-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.
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    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.
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    Cited by:

    1. Luis Florensa & Laura Márquez-Ramos & María Recalde, 2015. "The effect of economic integration and institutional quality of trade agreements on trade margins: evidence for Latin America," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 329-351, May.

    More about this item

    Keywords

    Regional integration; extensive margin; intensive margin; LAIA; panel data;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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