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Competitiveness, commercial blocks, and regional growth

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  • Carlos Azzoni

    ()

  • Paulo Sa-Porto

    ()

Abstract

The paper analyses the effects of the Mercosul commercial block on export intensity of different regions in Brazil. A gravitational model is employed to explain the intensity of exports of different Brazilian regions according to destination countries, differentiating those pertaining to Mercosul. Besides GDP, population and distance, typical of the gravitational model, indicators of regional competitiveness came out as important to explain regional export performance. The results indicate that the commercial block does not improve the export performance of regions, which are explained by the economic variables included in the model.

Suggested Citation

  • Carlos Azzoni & Paulo Sa-Porto, 2005. "Competitiveness, commercial blocks, and regional growth," ERSA conference papers ersa05p783, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa05p783
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/783.pdf
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    1. Tamim Bayoumi & Barry Eichengreen, 1997. "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA," NBER Chapters,in: Regionalism versus Multilateral Trade Arrangements, NBER-EASE Volume 6, pages 141-168 National Bureau of Economic Research, Inc.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    4. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-153, February.
    5. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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