What is it about?
We ask whether the trading pattern of Mercosur countries is aligned with approaches based on regional value chain, and if not, how it differs and why. In our evidence and analysis, we primarily use traditional gross trade data and Trade in Value Added (TiVA) indicators, and we look more at countries' profiles. We show that there has been a decrease in Brazilian trade with Mercosur, with manufactured exports being the main reason for the decline. We indicate that, in addition to the effect of China in the 2000s, there has been a structural movement of Mercosur economies, mainly regarding Brazil, which supports a hypothesis of primarization or deindustrialization.
Why is it important?
Our results show that Brazil and Argentina are both relatively closed to foreign trade, as well as global and regional value chains, which makes them even more poorly integrated with one another. This reinforces what we call Mercosur's 'introspective' model of integration, making it less outward-oriented, which is divergent with what is observed when regional value chains are encouraged.
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This page is a summary of: Divergences Between New Patterns of Global Trade and Brazil/Mercosur, Brazilian Political Science Review, December 2017, FapUNIFESP (SciELO), DOI: 10.1590/1981-3821201700030001.
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Divergences Between New Patterns of Global Trade and Brazil/Mercosur
Viola, Eduardo, & Lima, Jean Santos. (2017). Divergences Between New Patterns of Global Trade and Brazil/Mercosur. Brazilian Political Science Review, 11(3), e0001. Epub December 11, 2017.https://dx.doi.org/10.1590/1981-3821201700030001
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