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 …

I apply the fixed versus variable cost trade-off associated with a multinational firm’s choice between investing abroad … reducing obstacles to investment unambiguously favours setting up plants. When trade barriers decrease, typically, there will … the model are indicative of some of the developments in trade and direct investment among EU countries during the Single …