Measurement of the Trade Flows between the EU and Mercosur through Gravitation Analysis

Nevena Stancheva

Economic Thought journal, 2007, issue 6, 66-89

Abstract: This paper discusses the main factors that determine the interregional trade flows between EU and Mercosur. We apply the gravity model framework (cross-section and panel data) to examine the interregional integration effects on the trade volume for the period 1995-2005. The results show that further trade liberalization will be beneficial for both regional blocks. We found evidences for trade creation effect and “death of the distance” effect.

JEL-codes: C5 F1 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econth:y:2007:i:6:p:66-89

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