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Cambios en el patrón de especialización regional. Viejas ventajas comparativas y nuevas economías de escala

Listed author(s):
  • María Inés Terra
  • Marcel Vaillant

This paper analysis new hypothesis about the effects off regional integration on the MERCOSUR countries. From characterizing the initial patterns of specialization, it discusses the relevance of centre-periphery agglomeration hypothesis. It argues that the economic integration could increase the specialization from comparative advantages but, when there are economies of scale, also could produce a relocalization in the geographic economic activity. The existence of economies of scale and transport cost imply that the relative market's size is relevant to determine the specialization. The geographic regions, that's to say economic space naturally integrate with low transport costs, turn up an significative category to stdy specialization issues. Uruguay, as an interior border of MERCOSUR, faces an privileged geography which could be its main advantage in the process of integration. This advantage appears, in the demand side and in the supply side, because its population can improve their utility for increase on consume variety, or through improving its efficiency for specialization.

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Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0894.

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Length: 38 pages
Date of creation: Dec 1994
Handle: RePEc:ude:wpaper:0894
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