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Cited by 253

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How Regional Blocs Affect Excluded Countries: The Price Effects of MERCOSUR

Open access
Chang, Won, Winters, L. Alan·2002·American Economic Review

Abstract

The welfare effects of PTAs are most directly linked to changes in trade prices, i.e., the terms of trade. This paper employs a simple strategic pricing game in segmented markets to measure the effects of MERCOSUR on the pricing of “nonmember” exports to Brazil: As Brazil exempts its MERCOSUR partners from tariffs, the resulting competitive pressure leads other exporters to reduce their prices. Working with detailed data on unit values and tariffs we find that the creation of MERCOSUR was associated with significant declines in the prices of nonmembers' exports to the region.

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Research works printed but not linked: 12

  1. Baldwin Richard, 1988, American Economic Review, 78, 773
  2. 10.1016/S0014-2921(99)00033-1 · doi:10.1016/s0014-2921(99)00033-1
  3. Dornbusch Rudiger, 1987, American Economic Review, 77, 93
  4. Froot Kenneth, 1989, American Economic Review, 79, 637
  5. International Monetary Fund, 1996, DC: International Monetary Fund, 1997
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  7. 1993, Review, 83, 473
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  10. 10.1111/j.1467-9957.1964.tb01029.x · doi:10.1111/j.1467-9957.1964.tb01029.x
  11. 10.1093/wber/12.2.297 · doi:10.1093/wber/12.2.297
  12. 10.1093/oxfordjournals.oep.a028605 · doi:10.1093/oxfordjournals.oep.a028605

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Metadata

Authors
Chang, W., & Winters, L. A.
Venue
American Economic Review
Published
2002-08-01
Volume
92
Issue
4
Pages
889-904
ISSN
0002-8282 (ISSN-L)
OpenAlex
W3125834385
Cited by
253
References
21
FWCI
31.69
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: How Regional Blocs Affect Excluded Countries: The Price Effects of MERCOSUR. https://app.cochat.ai/papers/10.1257/00028280260344515
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Chang, W., & Winters, L. A. (2002). How Regional Blocs Affect Excluded Countries: The Price Effects of MERCOSUR. American Economic Review. https://doi.org/10.1257/00028280260344515

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