Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 2004 December;19(4) :667-689.
DOI: https://doi.org/10.11130/jei.2004.19.4.667
Trade Blocks and the Gravity Model: Evidence from Latin American Countries
Carlos Carrillo-Tudela and 
Carmen A Li 
University of Essex, UK
Copyright ©2004 Journal of Economic Integration
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 19801997. 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.

JEL Classifications: F14 and F15

Keywords: gravity model | bilateral trade | trade blocks | Andean Community and Mercosur
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail : jei@sejong.ac.kr
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.