IDEAS home Printed from https://ideas.repec.org/p/ude/wpaper/0903.html
   My bibliography  Save this paper

Integration of the Americas: Welfare Effects and Options for the MERCOSUR

Author

Listed:
  • Silvia Laens

    (CINVE, Red Mercosur)

  • Inés Terra

    (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República and Red Mercosur)

Abstract

The purpose of this paper is to assess the costs and benefits of the creation of the Free Trade Area of the Americas (FTAA) and other integration options for the MERCOSUR with the other countries in the hemisphere. The GTAP, a multiregional, multisector CGE model is used to simulate the effects of several scenarios that are currently on debate. The existing preferences, granted by previous agreements under the framework of the Latin American Integration Association (LAIA), and the preferential treatment granted by the USA through the Generalized System of Preferences (GSP), the Caribbean Basin Initiative (CBI) and the Andean Trade Preference Act (ATPA) are taken into account. The analysis decomposes the effects of the FTAA in order to assess the importance of market opening and market access and identifies the net effect of trade creation and trade diversion. Additionally, the FTAA initiative is decomposed in possible subregional agreements among the countries involved (MERCOSUR – Andean Community, MERCOSUR – USA, etc.). The assessment includes the estimation of the welfare effects in case the agreement does not include the agricultural sector. All the results are presented for the MERCOSUR as a bloc and for each of its members.

Suggested Citation

  • Silvia Laens & Inés Terra, 2003. "Integration of the Americas: Welfare Effects and Options for the MERCOSUR," Documentos de Trabajo (working papers) 0903, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:0903
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/20.500.12008/1983
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Grossman, Gene M & Helpman, Elhanan, 1995. "The Politics of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 85(4), pages 667-690, September.
    2. Antoni Estevadeordal & Robert Devlin, 2001. "What's New in the New Regionalism in the Americas?," IDB Publications (Working Papers) 9372, Inter-American Development Bank.
    3. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997. "Trade policy options for Chile : a quantitative evaluation," Policy Research Working Paper Series 1783, The World Bank.
    4. Marcel Vaillant & Alvaro Ons, 2003. "Winners and Losers in a Free Trade Area between The United States and MERCOSUR," Documentos de Trabajo (working papers) 1403, Department of Economics - dECON.
    5. Ethier, Wilfred J, 1998. "The New Regionalism," Economic Journal, Royal Economic Society, vol. 108(449), pages 1149-1161, July.
    6. Salazar-Xirinachs, Jose M., 2002. "Proliferation of sub-Regional Trade Agreements in the Americas: an assessment of key analytical and policy issues," Journal of Asian Economics, Elsevier, vol. 13(2), pages 181-212.
    7. Brown, Drusilla K. & Deardorff, Alan V. & Stern, Robert M., 1995. "Expanding NAFTA: Economic effects of accession of Chile and other major South American nations," The North American Journal of Economics and Finance, Elsevier, vol. 6(2), pages 149-170.
    8. repec:fth:michin:376 is not listed on IDEAS
    9. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 2001. "Chile's regional arrangements and the Free Trade Agreement of the Americas : the importance of market access," Policy Research Working Paper Series 2634, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laens, Silvia & Terra, María Inés, 2005. "MERCOSUR: Asymmetries and Strengthening of the Customs Union: Options for the Common External Tariff," IDB Publications (Working Papers) 2923, Inter-American Development Bank.
    2. Marcel, Vaillant & Fernando, Lorenzo, 2003. "The MERCOSUR and the Creation of the Free Trade Area of the Americas," MPRA Paper 47316, University Library of Munich, Germany, revised Nov 2003.
    3. Carlos Casacuberta & Ianina Rossi & Máximo Rossi, 2003. "El arte y el éxito: un matrimonio incómodo," Documentos de Trabajo (working papers) 0303, Department of Economics - dECON.
    4. Echenique, Federico & Manelli, Alejandro M., 2003. "Comparative Statics, English Auctions, and the Stolper-Samuelson Theorem," Working Papers 1178, California Institute of Technology, Division of the Humanities and Social Sciences.
    5. Curzel, Rosana & Silber, Simão Davi & Guilhoto, Joaquim José Martins, 2007. "Argentina, Brasil e Uruguai: um estudo dos impactos regionais da ALCA [Argentina, Brazil and Uruguay: a study of the regional impacts of ALCA]," MPRA Paper 54502, University Library of Munich, Germany.
    6. Andrés Pereyra, 2003. "Competencia en telefonía móvil en Uruguay: diseño de subastas, contratos y marco institucional," Documentos de Trabajo (working papers) 0103, Department of Economics - dECON.
    7. Cecilia González & Máximo Rossi, 2003. "Participación femenina en el mercado de trabajo: efectos sobre la distribución del ingreso en el Uruguay," Documentos de Trabajo (working papers) 1203, Department of Economics - dECON.
    8. Marisa Bucheli & Máximo Rossi, 2003. "El grado de conformidad con la vida: evidencia para las mujeres del Gran Montevideo," Documentos de Trabajo (working papers) 1003, Department of Economics - dECON.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Proff, H., 2002. "Business unit strategies between regionalisation and globalisation," International Business Review, Elsevier, vol. 11(2), pages 231-250, April.
    2. Robinson, Sherman & Thierfelder, Karen, 2002. "Trade liberalisation and regional integration: the search for large numbers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-20.
    3. Leonardo Baccini, 2010. "Explaining formation and design of EU trade agreements: The role of transparency and flexibility," European Union Politics, , vol. 11(2), pages 195-217, June.
    4. Hefeker, Carsten, 2003. "Handels- und Finanzarchitektur im Umbruch: Globale Integration und die institutionelle Arbeitsteilung von IWF, Weltbank und WTO," HWWA Discussion Papers 225, Hamburg Institute of International Economics (HWWA).
    5. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2004. "Regionalism," MTID discussion papers 65, International Food Policy Research Institute (IFPRI).
    6. Estevadeordal, Antoni, 2003. "The Impact of Free Trade Agreements on the Pattern of Trade," IDB Publications (Working Papers) 4525, Inter-American Development Bank.
    7. Baccini, Leonardo, 2010. "Explaining formation and design of EU trade agreements: the role of transparency and flexibility," LSE Research Online Documents on Economics 45565, London School of Economics and Political Science, LSE Library.
    8. Baccini, Leonardo, 2012. "Democratization and trade policy: an empirical analysis of developing countries," LSE Research Online Documents on Economics 44924, London School of Economics and Political Science, LSE Library.
    9. Antonis Adam & Thomas Moutos, 2002. "The Political Economy of EU Enlargement: Or, Why Japan is not a Candidate Country?," CESifo Working Paper Series 704, CESifo.
    10. Romulo Chumacero & Rodrigo Fuentes, 2004. "Chile's Free Trade Deals with the EU and the US: A Big Deal?," Econometric Society 2004 Far Eastern Meetings 661, Econometric Society.
    11. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    12. Scott Gehlbach & Konstantin Sonin & Ekaterina Zhuravskaya, 2010. "Businessman Candidates," American Journal of Political Science, John Wiley & Sons, vol. 54(3), pages 718-736, July.
    13. Siebert, Horst, 2005. "TAFTA - a dead horse or an attractive open club?," Kiel Working Papers 1240, Kiel Institute for the World Economy (IfW Kiel).
    14. Giovanni Maggi & Ralph Ossa, 2020. "Are Trade Agreements Good For You?," NBER Working Papers 27252, National Bureau of Economic Research, Inc.
    15. Pedro Moncarz & Marcelo Olarreaga & Marcel Vaillant, 2016. "Regionalism as Industrial Policy: Evidence from MERCOSUR," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 359-373, February.
    16. Francois, Joseph & Nelson, Douglas & Pelkmans-Balaoing, Annette, 2008. "Endogenous Protection in General Equilibrium: Estimating Political Weights in the EU," CEPR Discussion Papers 6979, C.E.P.R. Discussion Papers.
    17. Austria, Myrna S., 2003. "East Asian Regional Cooperation: Approaches and Processes," Discussion Papers DP 2003-02, Philippine Institute for Development Studies.
    18. Dobrin R. Kolev & Thomas J. Prusa, 1997. "Tariff Policy for a Monopolist Under Incomplete Information," NBER Working Papers 6090, National Bureau of Economic Research, Inc.
    19. Walmsley, Terrie L. & Hertel, Thomas W. & Ianchovichina, Elena, 2001. "Assessing the Impact of China’s WTO Accession on Foreign Ownership," Conference papers 330941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Rupa Duttagupta & Arvind Panagariya, 2007. "Free Trade Areas And Rules Of Origin: Economics And Politics," Economics and Politics, Wiley Blackwell, vol. 19(2), pages 169-190, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ude:wpaper:0903. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrea Doneschi or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/derauuy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.