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Transport Costs and "Natural" Integration in Mercosur
1999
Journal of Economic Integration
The paper explores the argument that trade between the Mercosur countries should be stimulated by pre f e r ential policies because of their geographic pro x i m it y. That is, that the Mercosur countries are candidates for "natural" integration. The paper finds that, on average, transportation margins on trade within Merc osur and between Mercosur and Chile are about 6 percentage points lower than on trade with the rest of the world. That is a significant margin, and one that was reflected in
doi:10.11130/jei.1999.14.4.497
fatcat:raacf7ng55a7lpzxqxez7na3cm