Did MERCOSUR affect interstate Brazilian trade ?
Yücer, Aycil; Siroën, Jean-Marc (2011), Did MERCOSUR affect interstate Brazilian trade ?, Journées d'études internationales : "Compétitivité régionale et mobilité internationale des facteurs", 2011-03, Orléans, France
TypeCommunication / Conférence
Conference titleJournées d'études internationales : "Compétitivité régionale et mobilité internationale des facteurs"
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Abstract (EN)We consider the effect of MERCOSUR on trade between Brazilian states and on trade of Brazilian states with the rest of the world. We use a gravity model to shed light on the possible diversion effect of MERCOSUR. Thanks to the data on inter-state trade only for four years including one available year for the pre-MERCOSUR period (1991). We show that MERCOSUR led to an increase of trade of Brazilian states with member countries however without neither affecting intra-state trade nor trade of Brazilian states with third countries. The paper also shows the lack of integration of the Northern region.
Subjects / KeywordsRegional Trade Agreements; Border Effect; Gravity Model; MERCOSUR; Brazil
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