Open Regionalism in the Andean Community: Creation or Deviation of Commerce?

Posted: 18 Oct 2006

See all articles by Germán G. Creamer

Germán G. Creamer

Stevens Institute of Technology, School of Business; Columbia University - Department of Computer Science

Abstract

This paper evaluates the extent to which the establishment of the Andean Free Trade Zone (AFTZ) has led to trade creation, as promised by open regionalism, or to trade diversion. The analysis of ex post income elasticities of import demand before (1980-1993) and after (1993-2000) the establishment of the AFTZ shows that the establishment of the AFTZ led to an increase of Andean Community trade, as the open regionalism view proposes, and not to a contraction of extra-regional trade. These results are confirmed by the intensity of trade index and the propensity to export intra- and extra-regionally.

Keywords: liberalizacion de comercio, creacion de comercio, desviacion de comercio, integracion

JEL Classification: F13, F14, F15

Suggested Citation

Creamer, Germán G., Open Regionalism in the Andean Community: Creation or Deviation of Commerce?. El Trimestre Economico, Vol. 71, No. 1, pp. 45-71, January-March 2004. Available at SSRN: https://ssrn.com/abstract=801928

Germán G. Creamer (Contact Author)

Stevens Institute of Technology, School of Business ( email )

1 Castle Point on Hudson
Hoboken, NJ 07030
United States
2012168986 (Phone)

HOME PAGE: http://www.creamer-co.com

Columbia University - Department of Computer Science ( email )

New York, NY 10027
United States

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