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...ch as information and transportation costs, have not been introduced as they are captured by the fixed effect term in our panel estimation. Several authors have also included exchange rate variables (=-=Matyas, 1997-=-, 1998, 2000; Rose, 2000). In our case, exchange rate variables have also been introduced, as the model will be used to analyze the impact of the exchange rate regime on trade. Gravity models usually ...

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...nsate for the loss of competitiveness. Although these measures were temporarily justified in the view of Argentina, they ran against the spirit of free trade that had marked the creation of Mercosur (=-=Giambiagi, 1999-=-). In the same vein, a current debate among Mercosur’s partners concerns the decision taken by Argentina to suspend Mercosur’s tariff, i.e. to abolish import duties on capital equipment while raising ...