Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/67374 
Year of Publication: 
2011
Citation: 
[Journal:] Atlantic Review of Economics [ISSN:] 2174-3835 [Volume:] 2 [Publisher:] Colegio de Economistas de A Coruña [Place:] A Coruña [Year:] 2011 [Pages:] 1-21
Publisher: 
Colegio de Economistas de A Coruña, A Coruña
Abstract: 
This paper examines the commercial relationship between MERCOSUR and the EU through an export demand function for the period 1980-2004. While at an aggregate level exports react moderately to relative prices, their reaction with respect to trade competitors' prices is important. Besides, trade partner's income adversely affects trade and the absorption effect seems to be absent. The average long-run price and income elasticities suggest that the EU is not an attractive destination for MERCOSUR exports. The estimate of the error correction model appears to predict some difficulties for a quick adjustment of variables to long run equilibrium.
JEL: 
F15
Document Type: 
Article

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