Trade blocs as determinants of trade flows in South American countries: an augmented gravity approach
Panel Analysis, we identify the determinants of the trade flows. The last section concludes.
5.2 Impact of the regionalisation in the level and direction of the trade flows in the Mercosur and CAN countries This work also compares results from the experience in the Mercosur and the CAN. So the extent to which the establishment of the Mercosur and the CAN has led to an improvement of intra-regional trade, as promised by Open Regionalism, avoiding at the same time the reduction of the inter-regional trade, is evaluated. Therefore, I present an analysis of the static effects in the trade flows. However, I first introduce some historical facts about the trading blocs under study.