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Performance of Western Hemisphere trading blocs : a cost-corrected gravity approach

Author: Enzo Croce; V Hugo Juan-Ramon; Feng Zhu; International Monetary Fund,; IMF Institute.
Publisher: [Washington D.C.] : International Monetary Fund, ©2004.
Series: IMF working paper, WP/04/109.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
We study the performance of the four Western Hemisphere trading blocs during the period 1978-2001. For the North American Free Trade Agreement (NAFTA), trade integration outweighed trade diversion; for MERCOSUR, increased integration and trade diversion went hand in hand; for the Central American Common Market (CACM) and the Andean Community, the evidence points to trade diversion only. We also find that trade among  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Croce, Enzo.
Performance of Western Hemisphere trading blocs.
[Washington D.C.] : International Monetary Fund, ©2004
(OCoLC)56411443
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Enzo Croce; V Hugo Juan-Ramon; Feng Zhu; International Monetary Fund,; IMF Institute.
ISBN: 1282044354 9781282044357 9781451898828 1451898827
OCLC Number: 647188586
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (23 pages).
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: IMF working paper, WP/04/109.
Responsibility: prepared by Enzo Croce, V. Hugo Juan-Ramon, and Feng Zhu.

Abstract:

We study the performance of the four Western Hemisphere trading blocs during the period 1978-2001. For the North American Free Trade Agreement (NAFTA), trade integration outweighed trade diversion; for MERCOSUR, increased integration and trade diversion went hand in hand; for the Central American Common Market (CACM) and the Andean Community, the evidence points to trade diversion only. We also find that trade among neighboring countries has increased since the early 1990s. The estimations are based on a nonlinear gravity equation that incorporates the hypothesis that exports create externalities that affect trade costs. This hypothesis might help reconcile the theoretical unitary income elasticity with most empirical findings of a non-unitary income elasticity in studies using the gravity equation.

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