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Economic integration and manufacturing concentration patterns: Evidence from Mercosur

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  • Traistaru, Iulia
  • Volpe Martincus, Christian

Abstract

Trade policy changes are likely to result in a reallocation of resources across sectors and space. Over the past two decades, Argentina, Brazil, Paraguay, and Uruguay have implemented unilateral trade liberalization programs and formed a regional bloc, Mercosur. The effects of these reforms on production structures in these countries have not received a great deal of attention. Have patterns of manufacturing concentration changed? What are their main determinants? This paper analyses relative manufacturing concentration patterns in Argentina, Brazil, and Uruguay over the period 1985-1998. The econometric evidence indicates that localization of demand and comparative advantages are the main driving forces of these patterns. The establishment of Mercosur seems to have played a role in the spatial distribution of manufacturing in the above three countries.

Suggested Citation

  • Traistaru, Iulia & Volpe Martincus, Christian, 2003. "Economic integration and manufacturing concentration patterns: Evidence from Mercosur," ZEI Working Papers B 23-2003, University of Bonn, ZEI - Center for European Integration Studies.
    • Handle: RePEc:zbw:zeiwps:b232003
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    Cited by:

    1. Volpe Martincus, Christian & Siedschlag, Iulia, 2010. "The Impact of South-South Preferential Trade Agreements on Industrial Development: An Empirical Test," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 69-104.
    2. H.J. Roelfsema, 2004. "Political Institutions and Trade Protection," Working Papers 04-06, Utrecht School of Economics.
    3. Volpe Martincus, Christian & Siedschlag, Iulia, 2010. "The Impact of South-South Preferential Trade Agreements on Industrial Development: An Empirical Test," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 69-104.

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    More about this item

    Keywords

    Economic Integration; Concentration of Industries; Comparative advantage; Economic Geography; Mercosur;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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