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

Author

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  • 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
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    5. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2003. "Explaining MERCOSUR sectoral exports to the EU: The role of economic and geographical distance," International Trade 0309025, University Library of Munich, Germany.
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    More about this item

    Keywords

    Sectoral MERCOSUR-EU trade; dynamic panel analysis; impact of tariff and non-tariff trade barriers;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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