Abstract

FAIRLIE, Alan; COLLANTES, Erika  and  CASTILLO, Lakshmi. The role of intra- and extra-regional agreements in trade flows: the case of the Andean Community of Nations. Prob. Des [online]. 2021, vol.52, n.204, pp.165-188.  Epub Apr 06, 2021. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2021.204.69603.

The Andean Community of Nations (CAN), created in 1969, is a regional trade agreement designed to promote development in member countries via integration. Member countries have also signed extra-regional agreements. Fifty years after the creation of CAN, it is crucial to determine whether intra- and extra-regional agreements have played a fundamental role in member countries’ trade flows, or whether other factors have significantly influenced these trade flows. This study estimates the augmented gravity model for the period 2000-2017. It found evidence that intra- and extra-regional agreements have not played a major role in CAN trade flows.

Keywords : Andean Community of Nations; trade agreements; trade flows; economic integration; panel data; gravity equation.

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