
Trade Blocks and the Gravity Model
Evidence from Latin American Countries
- Carlos Carrillo-Tudela Carmen A Li
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제19권 제4호
- 등재여부 : KCI등재
- 2004.12
- 667 - 689 (23 pages)
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.
Ⅰ. Introduction
Ⅱ. Latin America Integration Association and Intra-regional Trade Flows
Ⅲ. The Gravity Model of Trade
Ⅳ. Estimating the Gravity Equation
Ⅴ. Conclusions and Policy Implications