The determinants of regional exchange in Mercosur: geography and trade liberalization

Since the mid-eighties many Latin American countries have been involved in a process of trade liberalization1. In some cases, the tariff reduction has been quite impressive (see table 1). The obvious consequence of this liberalization was a strong increase in international trade flows between these...

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Autores principales: Garriga, Marcelo Jorge, Sanguinetti, Pablo
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 1995
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/170321
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spelling I19-R120-10915-1703212024-09-18T04:09:08Z http://sedici.unlp.edu.ar/handle/10915/170321 The determinants of regional exchange in Mercosur: geography and trade liberalization Garriga, Marcelo Jorge Sanguinetti, Pablo 1995 1995 2024-09-17T18:15:33Z en Ciencias Económicas Mercosur trade flows geographical proximity Since the mid-eighties many Latin American countries have been involved in a process of trade liberalization1. In some cases, the tariff reduction has been quite impressive (see table 1). The obvious consequence of this liberalization was a strong increase in international trade flows between these countries and the rest of the world . This raise in the overall level of international trade has also been accompanied by an even stronger increase in regional exchange of goods and services . For example, in the case of ALADI countries, the rate of change in regional trade between 1987 and 1992 surpasses that corresponding to total trade (see table 2). As a consequence, since 1987, these economies experienced an increase in their share of regional exports and imports on total exports and imports; it rose from 12% in 1987 to 16.5% in 1992. What explains these upsurge in trade flows among Latin America countries? What role have played commercial policies in this phenomenon? . In particular, have unilateral- non preferential--trade liberalization schemes anything to do with this phenomena?. What about the effect of sub-regional liberalizations schemes that became popular in the 1990s ? . How important is geography (distance) and "neighborhood" in explaining this increase in regional trade. The purpose of this paper is to address these questions, concentrating our attention on the countries belonging to MERCOSUR. In particular, we provided some evidence supporting the fact that the important increase in trade flows among Mercosur countries is driven by the exploitation of comparative advantages couple with geographical proximity. Both factors have been encouraged by the unilateral trade liberalization reforms pursued by each nation. The effect of preferential reduction in tariffs has also spurred trade among the four economies. Nevertheless, its contribution is far less important once appropriate control is taken for geography and unilateral liberalization policies Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
Mercosur
trade flows
geographical proximity
spellingShingle Ciencias Económicas
Mercosur
trade flows
geographical proximity
Garriga, Marcelo Jorge
Sanguinetti, Pablo
The determinants of regional exchange in Mercosur: geography and trade liberalization
topic_facet Ciencias Económicas
Mercosur
trade flows
geographical proximity
description Since the mid-eighties many Latin American countries have been involved in a process of trade liberalization1. In some cases, the tariff reduction has been quite impressive (see table 1). The obvious consequence of this liberalization was a strong increase in international trade flows between these countries and the rest of the world . This raise in the overall level of international trade has also been accompanied by an even stronger increase in regional exchange of goods and services . For example, in the case of ALADI countries, the rate of change in regional trade between 1987 and 1992 surpasses that corresponding to total trade (see table 2). As a consequence, since 1987, these economies experienced an increase in their share of regional exports and imports on total exports and imports; it rose from 12% in 1987 to 16.5% in 1992. What explains these upsurge in trade flows among Latin America countries? What role have played commercial policies in this phenomenon? . In particular, have unilateral- non preferential--trade liberalization schemes anything to do with this phenomena?. What about the effect of sub-regional liberalizations schemes that became popular in the 1990s ? . How important is geography (distance) and "neighborhood" in explaining this increase in regional trade. The purpose of this paper is to address these questions, concentrating our attention on the countries belonging to MERCOSUR. In particular, we provided some evidence supporting the fact that the important increase in trade flows among Mercosur countries is driven by the exploitation of comparative advantages couple with geographical proximity. Both factors have been encouraged by the unilateral trade liberalization reforms pursued by each nation. The effect of preferential reduction in tariffs has also spurred trade among the four economies. Nevertheless, its contribution is far less important once appropriate control is taken for geography and unilateral liberalization policies
format Objeto de conferencia
Objeto de conferencia
author Garriga, Marcelo Jorge
Sanguinetti, Pablo
author_facet Garriga, Marcelo Jorge
Sanguinetti, Pablo
author_sort Garriga, Marcelo Jorge
title The determinants of regional exchange in Mercosur: geography and trade liberalization
title_short The determinants of regional exchange in Mercosur: geography and trade liberalization
title_full The determinants of regional exchange in Mercosur: geography and trade liberalization
title_fullStr The determinants of regional exchange in Mercosur: geography and trade liberalization
title_full_unstemmed The determinants of regional exchange in Mercosur: geography and trade liberalization
title_sort determinants of regional exchange in mercosur: geography and trade liberalization
publishDate 1995
url http://sedici.unlp.edu.ar/handle/10915/170321
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