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Who wins in South-South trade agreements? New evidence for MERCOSUR

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Abstract

Using a detailed database on intra-MERCOSUR tariffs, we estimate the effect of tariff preferences on the origin of imports of MERCOSUR members. The results show tariff preferences affected imports patterns in the cases of Argentina and Uruguay, and to a less extent also those of Brazil. For the first two countries the results support the hypothesis that MERCOSUR has produced a diversion of trade, no similar evidence is found for Brazil and Paraguay.

Suggested Citation

  • Pedro E. Moncarz & Marcel Vaillant, 2010. "Who wins in South-South trade agreements? New evidence for MERCOSUR," Journal of Applied Economics, Universidad del CEMA, vol. 13, pages 305-334, November.
    • Handle: RePEc:cem:jaecon:v:13:y:2010:n:2:p:305-334
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    File URL: https://ucema.edu.ar/publicaciones/download/volume13/moncarz.pdf
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    Cited by:

    1. Luis Marcelo Florensa & Pedro Esteban Moncarz, 2020. "Trade integration strategies and welfare. A comparative study of six selected Latin-American countries," Asociación Argentina de Economía Política: Working Papers 4377, Asociación Argentina de Economía Política.
    2. Adriana Peluffo, 2011. "Integración regional y difusión de tecnologí­a: el caso uruguayo," Documentos de Trabajo (working papers) 11-10, Instituto de Economía - IECON.
    3. Lalanne, Alvaro & Sánchez, Guillermo, 2020. "Evaluación del impacto de acuerdos comerciales: metodologías, experiencias internacionales y aplicaciones para el caso uruguayo," Estudios y Perspectivas – Oficina de la CEPAL en Montevideo 45070, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Ragoobur, Verena Tandrayen & Tengur, Neha Devi & Seewooruttun, Bhooteshta, 2021. "South-South Trade: The Potential for Mauritius," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(3), pages 45-65, September.
    5. Yoon Heo & Nguyen Khanh Doanh, 2020. "Is NAFTA Trade‐Creating or Trade‐Diverting? A System GMM Approach," Economic Papers, The Economic Society of Australia, vol. 39(3), pages 222-238, September.
    6. Alberto Portugal & Jose-Daniel Reyes & Gonzalo Varela, 2015. "Uruguay," World Bank Publications - Reports 23349, The World Bank Group.
    7. Frederik Stender, 2018. "MERCOSUR in gravity: an accounting approach to analyzing its trade effects," International Economics and Economic Policy, Springer, vol. 15(2), pages 501-522, April.

    More about this item

    Keywords

    MERCOSUR; tariff preferences; trade patterns; monopolistic competition;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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