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MERCOSUR-EU trade: The impact of adverse macroeconomic developments and trade barriers on MERCOSUR exports

Author

Listed:
  • Felicitas Nowak-Lehmann

    (Ibero-America Institute for Economic Reserach of the Universitiy of Goettingen)

  • Inmaculada Martínez-Zarzoso

Abstract

This article examines sectoral MERCOSUR exports to the EU in the period of 1988 to 1996. A sectoral study is considered indispensable since tariff and non-tariff trade barriers vary strongly among sectors. The empirical investigation is based on both a dynamic panel analysis and a rather qualitative evaluation of the extent of tariff and non-tariff barriers imposed by the EU. The ex-post analysis for the period of 1988 to 1996 revealed three things: First, a more competitive real exchange rate could contribute to a better MERCOSUR export performance. Second, EU protection has had in general a very negative impact on MERCOSUR export growth rates. Third, EU protection strongly affected MERCOSUR's largest export sectors.

Suggested Citation

  • Felicitas Nowak-Lehmann & Inmaculada Martínez-Zarzoso, 2003. "MERCOSUR-EU trade: The impact of adverse macroeconomic developments and trade barriers on MERCOSUR exports," International Trade 0310002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0310002
    Note: Type of Document - Acrobat PDF; pages: 26 ; figures: included
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    References listed on IDEAS

    as
    1. Diao, Xinshen & Somwaru, Agapi, 2000. "An Inquiry on General Equilibrium Effects of MERCOSUR--An Intertemporal World Model," Journal of Policy Modeling, Elsevier, vol. 22(5), pages 557-588, September.
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    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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