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

By Jaime Behar

The essays integrated during this publication are the end result ofseven years ofresearch spanning the 1990-1997 interval. such a lot of them were released in medical magazines or as chapters of books. To the tip of this variation, and so that it will stay away from repetitions, the unique texts were converted, quite in regards to the titles and introductions ofthe chapters. bankruptcy reproduces the thing "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 examine ready for UNIDO, the United countries commercial 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 was once released with the identify "Plant-size results ofTrade: The Case of MERCOSUR international locations" as a bankruptcy of the booklet progress exchange and Integration in Latin the United States (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 financial Integration for the Southern Cone international locations: Simulations of exchange Liberalization" as released within the constructing Economies (Vol. XXXIII, number one, pp. 1-31, mars 1995). eventually, bankruptcy six is the revised and up-to-date model of the paper awarded on the First ecu Congress ofLatinamericanists, which happened at Salamanca, Spain in June 1996.

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

Sample text

Correlation of the 1975 and 1990 rankings of intra-industry trade indices of intra-MERCOSUR trade in tum produced still lower coefficients. These results indicate that there are numerous cases of simultaneous intra- and inter-industry specialization, depending on the direction of the exchange. They further suggest that the dynamism demonstrated by intra-industry trade in the MERCOSUR context does not relate to the increase in product differentiation within a single industry, but to the emergence of specialization processes within new industries.

More specifically, it is assumed that intra-industry trade tends to increase in those branches where technological innovation plays a vital role in maintaining competitiveness in the international market. From this perspective, investment in new technologies contributes to 3The graph for Paraguay has been omitted since the indices for this country do not exceed 6 per cent in any of the relevant cases. Analysis by Product Group 39 Argentina 60 50 40 30 --- ,. ,......... 1983 1985 1987 1989 45 40 35 30 25 20 15 10 1977 1975 1981 1979 1983 1985 1987 1989 45 40 35 30 25 20 15 10 - -- 1975 IMERCOSUR - , , -~- _ 1977 ..

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. According to the data furnished in that chapter, the 14 intermediate goods industries which in 1985 recorded intraindustry indices over 50 per cent for Argentine-Brazil trade falls under the HCfT category. Of these, six represent potential cases of product differentiation (vertical or horizontal).

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