Siroën, Jean-Marc; Yucer, Aycil - In: Review of World Economics (Weltwirtschaftliches Archiv) 148 (2012) 3, pp. 553-582
We consider the impact of MERCOSUR on trade among Brazilian states and on trade by Brazilian states with MERCOSUR and the rest of the world. We use a theoretically founded gravity model to shed light on MERCOSUR’s possible creation and diversion effects as well as its “preference erosion”...