By employing a model with international trade costs and imperfect competition, in which a domestic firm serves both the … domestic market and the foreign market, we show that intraindustry trade compared to intersectoral trade is globally, but not …, because domestic consumers have to bear trade costs. …

Preferential trade agreements could lead to a reallocation of resources across sectors and countries. Production …, empirical evidence on South-South trade agreements is limited. The purpose of this paper is to fill this gap in the empirical …, and Uruguay over the period 1985-1998. We find that deepened preferential trade liberalization has fostered a reshaping of …