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Title:Economic integration and location of manufacturing activities: Evidence from MERCOSUR PDF Logo
Authors:Sanguinetti, Pablo
Traistaru, Iulia
Volpe Martincus, Christian
Issue Date:2004
Series/Report no.:ZEI working paper B 11-2004
Abstract:Economic integration leads to a reallocation of resources across sectors and space. Location patterns resulting from North-North and North-South regional trade initiatives have been documented in several studies. However, empirical evidence on South-South agreements is rather limited. In this respect, MERCOSUR provides an interesting case study. This paper aims at answering the following questions: What are the main driving factors explaining location patterns in the Southern Cone? To what extent has the establishment of MERCOSUR affected location of economic activities? Using data for the period 1985-1998, we identify the determinants of manufacturing location patterns and assess their changes in the context of increased economic integration. We find that preferential trade liberalization has fostered the influence of factors underlined by the recent trade theories, such as economies of scale and inputoutput linkages, relative to comparative advantage considerations.
Subjects:Economic Integration
Location of Industrial Activities
MERCOSUR
JEL:F14
F15
L60
Document Type:Working Paper
Appears in Collections:ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn

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