This paper aims to focus on
the effects of economic integration in Latin America on the extensive and
intensive margins of trade, by following the methodology introduced in
Baier, Bergstrand and Feng (2011). The analysis is performed for eleven member
countries ofthe Latin
American Integration Association (LAIA). In order to do so, we usepanel data for
bilateral exports of goods from Argentina, Bolivia, Brazil, Chile, Colombia,
Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela to a large group of
trading partners
over the period 1962-2005.
Unlike other papers
which study the effect
of integration
agreements ontrade marginsonly in
industrial manufacturing,
we focus in three
different sectors: a) primary goods and manufactures of agricultural origin; b)
manufactures of industrial origin and c) mineral fuels, lubricants and related
materials.