By Jaime Behar
The essays integrated during this publication are the outcome ofseven years ofresearch spanning the 1990-1997 interval. so much of them were released in clinical magazines or as chapters of books. To the tip of this version, and to be able to stay away from repetitions, the unique texts were converted, rather in regards to the titles and introductions ofthe chapters. bankruptcy reproduces the object "Economic Integration and Intra-Industry exchange: The Case of the Argentine-Brazilian loose exchange Agreement", released within the magazine of universal Markets (vol XXIX, No five, pp. 527-552, sept. 1991). bankruptcy 3 originates from an empirical examine ready for UNIDO, the United countries commercial improvement association. The analytical framework and the initial conclusions of that paintings seemed in a operating paper "The MERCOSUR trend of Intra-Industry exchange" (RP No seventy five, Stockholm: LAIS, 1997). bankruptcy 4 was once released with the identify "Plant-size results ofTrade: The Case of MERCOSUR international locations" as a bankruptcy of the e-book development exchange and Integration in Latin the United States (W. Karlsson and A. Malaki (eds. ), Stockholm: LAIS, pp. 297-319, 1996). bankruptcy 5 in tum corresponds to the thing entitled "Measuring the consequences of monetary Integration for the Southern Cone international locations: Simulations of exchange Liberalization" as released within the constructing Economies (Vol. XXXIII, number one, pp. 1-31, mars 1995). eventually, bankruptcy six is the revised and up-to-date model of the paper offered on the First ecu Congress ofLatinamericanists, which happened at Salamanca, Spain in June 1996.
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Additional info for Cooperation and Competition in a Common Market: Studies on the Formation of MERCOSUR
It should be pointed out, however, that the foregoing observation is based on the assumption that trade flows are entirely governed by market forces a notion which is rather questionable in the present case given the importance of sectoral and intra-fum trade agreements in the MERCOSUR automobile industry. Note, furthermore, the sizeable increase in the GL index in the office machinery industry associated with the establishment of a free trade zone. 10. 04 Electrical household appl. 36 Pre Motor vehicles 3843 48 Patterns of Intra-Industry Trade results of the simulations, growing intra-industry trade in this case is associated with greater penetration of Argentine fIrms into the Brazilian market.
As a result, Argentina showed an annual deficit in its trade with Brazil on the order of $400 million for the first four years of the 19851989 period. This is equivalent to the average Brazilian surplus in intraMERCOSUR trade during the whole period. This trend was reversed in 1989, basically as a result of the implementation of the PICEAB agreement described in Chapter 2, the serious Argentine recession of that year which seriously restricted imports and the reactivation of the Brazilian economy.
The accuracy of our results is also limited by the fact than when relating tariff barriers to a country's comparative advantages, the trade that might have occurred without these barriers has not been taken into account. Hence only tentative conclusions can be stated here. The most important one is that the indiscriminate liberalization of bilateral trade would produce serious adjustment costs for Argentine firms. This supports the view that economic integration 28 Industrial Adjustment, Product Differentiation and Economies of Scale between the two countries should proceed gradually and that integration should be aimed at stimulating intra-industry rather than inter-industry trade.