Trade Blocks and the Gravity Model: Evidence from Latin American Countries

Carlos Carrillo-Tudela and Carmen A Li
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Carmen A Li: University of Essex, UK

Journal of Economic Integration, 2004, vol. 19, 667-689

Abstract:

We apply the gravity model to examine the effects of the Andean Community and Mercosur on both intra-regional and intra-industrial trade in the period 1980- 1997. After accounting for size distance and competitiveness effects, the Andean Community preferential trade agreements had a significant effect on the reference products but only a marginal effect on the differentiated products, in particular capital-intensive goods. Mercosur preferential trade agreements had a significant positive effect only on the capital-intensive subcategory of the reference products.

Keywords: gravity model; bilateral trade; trade blocks; Andean Community and Mercosur (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (10)

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Working Paper: Trade Blocks and the Gravity Model: Evidence from Latin American Countries (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0284

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