Regionalism as Industrial Policy: Evidence from MERCOSUR

This paper empirically explores whether trade preferences can be used as a substitute for industrial policy and help countries achieve their industrialization objectives at the expense of other regional members. Results show that Mercado Común del Sur (MERCOSUR) preferences obtained by Brazilian exp...

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Detalles Bibliográficos
Autores: Moncarz, Pedro Esteban, Olarreaga, Marcelo, Vaillant, Marcel
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2016
País:Argentina
Institución:Consejo Nacional de Investigaciones Científicas y Técnicas
Repositorio:CONICET Digital (CONICET)
Idioma:inglés
OAI Identifier:oai:ri.conicet.gov.ar:11336/179672
Acceso en línea:http://hdl.handle.net/11336/179672
Access Level:acceso abierto
Palabra clave:REGIONALISM
MERCOSUR
INDUSTRIAL POLICY
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
Descripción
Sumario:This paper empirically explores whether trade preferences can be used as a substitute for industrial policy and help countries achieve their industrialization objectives at the expense of other regional members. Results show that Mercado Común del Sur (MERCOSUR) preferences obtained by Brazilian exporters have led to an increase in exports of relatively sophisticated products in which Brazil does not enjoy a global comparative advantage. On the contrary, smaller members of MERCOSUR export to the region products in which they have strong comparative advantages and with relatively low levels of sophistication. This suggests that MERCOSUR has helped Brazil achieve its industrialization objectives, but has not contributed to the industrialization of its smaller members.