Exploring Trade Flows Between MERCOSUR and the EU: What does an Export Demand Function Tell Us?

Castellón

Congreso; XII Conference on International Economics; 2011

Universitat Jaume I

The paper also estimates an export demand function for some sectors that may be of great significance to revert this situation and to strength trade relations between both regions. The preliminary estimate of the error correction model appears to predict some difficulties for a quick adjustment of variables to long run equilibrium.