Economic integration leads to a reallocation of resources across sectors and space. Location patterns resulting from North-North and North-South regional trade initiatives have been documented in several studies. However, empirical evidence on South-South agreements is rather limited. In this...

Over the last fifteen years, Argentina, Brazil, Paraguay and Uruguay have implemented major economic reforms including unilateral trade liberalization programs and the constitution of a regional trade bloc, Mercosur. This trade policy change has led to a reallocation of resources across sectors...