TY  - GEN
AU  - Feal-Zubimendi, Soledad
AU  - Rosas García, José Nicolás
AU  - Hernaiz, Daniel
AU  - Bastos, Fabiano
TI  - Trade Potential in Southern Cone Countries
PY  - 2018
Y1  - 2018/03/22
DO  - 10.18235/0001041
AB  - A trade gravity model is used to calculate the bilateral export potential of Southern Cone countries (Argentina, Brazil, Chile, Paraguay, and Uruguay) and identify patterns of weak performance across destinations and productive sectors. After controlling for key trade fundamentals and country and time effects, we find that exports to large advanced economies like the United States and the European Union fall short of expected levels. Potential trade with the rest of Latin America shows a high degree of heterogeneity across sectors and countries. Exports within the Southern Cone are generally above the predicted value, but there is still space for higher flows, particularly regarding Chile-MERCOSUR relations.
UR  - https://doi.org/10.18235/0001041
ER  -