Date
2011
Dewey
Economie internationale
Sujet
Regional Trade Agreements; Border Effect; Gravity Model; MERCOSUR; Brazil
JEL code
F14; F15; R10; R50
Conference name
Journées d'études internationales : "Compétitivité régionale et mobilité internationale des facteurs"
Conference date
03-2011
Conference city
Orléans
Conference country
France
Author
Yücer, Aycil
Siroën, Jean-Marc
Type
Communication / Conférence
Item number of pages
22
Abstract (EN)
We consider the effect of MERCOSUR on trade between Brazilian states and on trade of Brazilian states with the rest of the world. We use a gravity model to shed light on the possible diversion effect of MERCOSUR. Thanks to the data on inter-state trade only for four years including one available year for the pre-MERCOSUR period (1991). We show that MERCOSUR led to an increase of trade of Brazilian states with member countries however without neither affecting intra-state trade nor trade of Brazilian states with third countries. The paper also shows the lack of integration of the Northern region.
