Congresos y reuniones científicas
Exploring Trade Flows Between MERCOSUR and the EU: What does an Export Demand Function Tell Us?
Congreso; ASEPELT 2012; 2012
This paper examines the commercial relationship between MERCOSUR and the EU
through an export demand function for the period 1980-2004. While at an aggregate
level exports react moderately to relative prices, their reaction with respect to trade
competitors? prices is important. Besides, trade partner?s income adversely affects
trade and the absorption effect seems to be absent. The average long-run price and
income elasticities suggest that the EU is not an attractive destination for MERCOSUR
exports. The estimate of the error correction model appears to predict some difficulties
for a quick adjustment of variables to long run equilibrium.