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Investigación económica

versión impresa ISSN 0185-1667


TELLO, Mario D.. Preferential arrangements and trade flows in Brazil, Mexico and Chile, 1962-2005. Inv. Econ [online]. 2009, vol.68, n.270, pp.131-166. ISSN 0185-1667.

This paper is a partial account of the results obtained from a project about preferential trade arrangements (PTAs) impact on exports and imports value and the rate of economic growth in 31 Latin American and Caribbean countries during the period 1962-2005. It reports the results of PTAs' impact on trade flows of three countries Mexico, Chile and Brazil. In contrast to previous methods and results found in the literature, impact estimations are carried out by country, incorporating four types of PTAs (unilateral, generalized system of preferences, regional and multilateral arrangements) implemented in each country for the 1962-2005 period. In addition to binary variables associated with the set of PTAs, the estimations, which are based upon the gravity equation, include variables representing: i) competitive and comparative advantages (or differences in the level of economic development); i) trade barriers; iii) the relative prices of tradable goods; and iv) cultural and geographic features of trading countries.

Palabras llave : preferential trade arrangements; gravity equation; trade agreements.

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