The effects of Mercosur on commerce and economic sectors

• Grant number: 14/19354-0
• Support Opportunities: Scholarships in Brazil - Master
• Start date: January 01, 2015
• End date: April 30, 2016
• Field of knowledge: Applied Social Sciences - Economics - International Economy
• Principal Investigator: Mauro Rodrigues Jr
• Grantee: Bruno Ferreira Cordeiro
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil
• Associated scholarship(s): 15/12833-2 - Trade liberalization, Mercosur and their impacts on economic growth in Brazil, BE.EP.MS

Abstract

This dissertation aims to measure the effects of Mercosur in terms of trade creation and diversion, using a comprehensive database and the most modern instruments in gravity literature. In recent years, there has been a great advancement in theory and estimation of gravity equations, which helped the microfoundation of these models and the obtainment of consistent results. Our estimates show that Mercosur resulted in trade creation, which occurs when both the intra regional agreement trade and the trade with the rest of the world increase.