Abstract
ABSTRACT Heterogeneity among trade agreements across Latin American countries is important for comparing different experiences and for evaluating the success of existing trade agreements. This note evaluates the Mercosur agreement in a counterfactual framework. Member countries’ experiences are compared to the Mexican experience in several dimensions other than trade. In particular, the effect of trade agreements is evaluated in terms of its effect on the labor market (inequality and informality) and on other measures of integration. This new analysis puts Mercosur in a more positive balance with respect to the pure trade theory analysis.
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