Trade integration strategies and welfare. A comparative study of six selected Latin-American countries

MONCARZ, PEDRO ESTEBAN; FLORENSA, MARCELO; RECALDE, MARÍA LUISA

Bournemouth

Congreso; XVI Arnoldshain Seminar; 2019

Bournemouth University

Latin America has been historically one of the most closed regions in the world, with policies intended to protect the domestic market from foreign competition. In the 1980s, and with more impetus since the 1990s, there was a wave toward a more open trade policy. However, this change was not simultaneous in all countries in the region, neither was the use of similar instruments, and even less changes took place at a similar pace. Thus, considering the apparent differences in the strategies followed the six countries, we aim at looking at the welfare effects of such strategies. In particular, we look at the effects on three dimensions: the quality of the imported goods, the quality-adjusted prices, and the variety of imported products. To do this, we follow on the methodology proposed by Breinlich, et al. (2016).