Development and contribution from the intra-industry trade to total growth trade between Brazil and Argentina
DOI:
https://doi.org/10.5380/re.v36i2.13848Keywords:
Mercosur, Inter and intra-industry trade, trade integrationAbstract
This study examines the development of Intraindustry Trade (CII) and
its contribution to the growth of trade between Brazil and Argentina in the period
1990 to 2007. Thus, the methodology proposed by Menon and Dixon (1997) that
decomposes the components of trade types in intra and inter-industry was used.
The results indicated that for many sectors, with the formation of Mercosur, the
trade between Brazil and Argentina, before characterized by inter-industry trade
relations have been characterized by the intra-industry trade. However, because
of high production specialization between these economies, the dynamic contribution
of trade to total intra-industry trade was in various periods lower than the
contribution of inter-industry trades.
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