The welfare effects of preferential trading agreements, are most directly linked to changes in trade prices - that is, the terms of trade. The authors use a simple strategic pricing game in segmented markets, to measure the effects of MERCOSUR on the pricing of "non-member" exports to the regional trading bloc. Working with detailed data on unit values, and tariffs, they find that the creation of MERCOSUR is associated with significant declines in...
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INFORMATION
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1999/08/31
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Document de travail de recherche sur les politiques
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WPS2157
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1
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1
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2010/07/01
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How regional blocs affect excluded countries - the price effects of MERCOSUR
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price elasticity of demand
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