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Does Mercosur's trade performance raise concerns about the effects of regional trade arrangements (Inglés)

This study employs a new methodological approach that measures production efficiency in changing trade patterns. It shows that the most rapidly growing products in Mercosur's intratrade generally are goods in which members do not have a comparative advantage and have not been able to export competitively to outside markets. This is consistent with substantial trade diversion within the arrangement. Mercosur's discriminatory tariffs against nonmembers...
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