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

By Jaime Behar

The essays incorporated during this booklet are the end result ofseven years ofresearch spanning the 1990-1997 interval. so much of them were released in clinical magazines or as chapters of books. To the top of this version, and with a purpose to stay away from repetitions, the unique texts were changed, really 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 loose 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 development of Intra-Industry exchange" (RP No seventy five, Stockholm: LAIS, 1997). bankruptcy 4 used to be released with the name "Plant-size results ofTrade: The Case of MERCOSUR international locations" as a bankruptcy of the ebook progress alternate and Integration in Latin the USA (W. Karlsson and A. Malaki (eds. ), Stockholm: LAIS, pp. 297-319, 1996). bankruptcy 5 in tum corresponds to the item entitled "Measuring the consequences of monetary Integration for the Southern Cone international locations: Simulations of exchange Liberalization" as released within the constructing Economies (Vol. XXXIII, number 1, pp. 1-31, mars 1995). eventually, bankruptcy six is the revised and up-to-date model of the paper provided on the First ecu Congress ofLatinamericanists, which came about at Salamanca, Spain in June 1996.

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Additional info for Cooperation and Competition in a Common Market: Studies on the Formation of MERCOSUR

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This is particularly the case in the motor vehicle industry where the index falls to less than 33 per cent, reflecting a lower level of intra-industry specialization when trade between both countries is liberalized. It should be pointed out, however, that the foregoing observation is based on the assumption that trade flows are entirely governed by market forces a notion which is rather questionable in the present case given the importance of sectoral and intra-fum trade agreements in the MERCOSUR automobile industry.

Generally speaking, the predominance of products classified as intensive in human capital and technology confirms the hypotheses that stress the importance of economies of scale and differentiation processes induced by technological change for intra-industry trade. The status of intermediate and capital goods of said products however calls for a more cautious analysis. Recall from Chapter 2 that the sources of intra-industry trade in intermediate products and capital goods differ in general from those of consumer goods.

Each one of the groups thus selected has been classified in the columns entitled FI according to factor intensity. 4 All of the 17 products selected in the case of Argentina were classified as intensive in human capital and technology. The proportions were 20 out of 21 for Brazil and 11 out of 13 for Uruguay. Paraguay did not record any group of products that met the criteria established above. Note that in the three countries the products with the highest amount of intra-industry trade (over 80 per cent) belong to the HCfT category.

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