Cooperation and Competition in a Common Market: Studies on by Jaime Behar

By Jaime Behar

The essays integrated during this booklet are the outcome ofseven years ofresearch spanning the 1990-1997 interval. such a lot of them were released in clinical magazines or as chapters of books. To the tip of this variation, and with a purpose to stay away from repetitions, the unique texts were transformed, relatively 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 unfastened exchange Agreement", released within the magazine of universal Markets (vol XXIX, No five, pp. 527-552, sept. 1991). bankruptcy 3 originates from an empirical research ready for UNIDO, the United countries business improvement association. The analytical framework and the initial conclusions of that paintings seemed in a operating paper "The MERCOSUR trend of Intra-Industry alternate" (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 booklet progress exchange and Integration in Latin the US (W. Karlsson and A. Malaki (eds. ), Stockholm: LAIS, pp. 297-319, 1996). bankruptcy 5 in tum corresponds to the item entitled "Measuring the results of monetary Integration for the Southern Cone international locations: Simulations of alternate Liberalization" as released within the constructing Economies (Vol. XXXIII, #1, pp. 1-31, mars 1995). eventually, bankruptcy six is the revised and up to date model of the paper awarded on the First ecu Congress ofLatinamericanists, which came about at Salamanca, Spain in June 1996.

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Recall from Chapter 2 that, when measuring the intensity of intra-industry trade in Argentine-Brazilian trade, we first defmed "industries" according to the three-digit level of the SITC and found that four such "industries" exhibited high intraindustry trade indices. Analysis at the four-digit level showed just how deceiving these results really were. In effect, at this level, two of the industries - household type equipment and photographic equipment - represented clear cases of next to complete inter-industry specialization.

Own estimations based on COMTRADE data 32 Patterns of Intra-Industry Trade As reflected in the figure, Brazil showed a trade surplus in the 1975-79 period on the order of $250 million. Most of this surplus was in trade with Paraguay (see Tables Al and A2 of the Appendix). In the subsequent periods, Brazil's manufactured exports to Argentina increased by more than 300 per cent while imports barely doubled. 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.

The last three colunms provide the structure of total trade in each industry by destination. As can be observed, these structures differ dramatically from one another. In the electrical household appliances industry (3833), for example, the average share of intra-MERCOSUR trade in the total trade of the three countries is over 40 per cent. In the pharmaceutical industry (3522), this share does not reach 9 per cent. 10 compares the intra-industry trade indices resulting from the simulations with the pre-integration indices resulting from the calibration of the model.

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