Skip to main content

Evolving Patterns of Trade between Brazil and the European Union 1994–2005

  • Chapter
The EU and Emerging Markets

Abstract

The evolution of trade patterns is of major importance for trade negotiations, since changes in trade patterns have important implications for the formulation of trade policies. The goal of this paper is to provide a dynamic test to evaluate the evolution of trade patterns between Brazil and the European Union following (2000) in calculating transition probabilities to measure mobility across export sectors. In addition, a structural change test in the sense of (2006) is used to verify if the patterns of trade are constant in the 1994–2005 period. The results of this analysis reveal a typical North-South trade pattern between the EU and Brazil. Trade specialization is primarily based on factor endowment although some evidence of increasing intra-industry trade and trade diversification appears.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Andrews, D. W. K. (2003). End-of-sample Instability Tests, Econometrica 71 (6), 1661–1694.

    Article  Google Scholar 

  • Balassa, B. (1965), Trade Liberalization and ‘Revealed’ Comparative Advantage, Manchester School 33 (2), 99–123.

    Article  Google Scholar 

  • Bastos, P., Cabral, M. (2007), The Dynamics of International Trade Patterns, Review of World Economics/Weltwirtschaftliches Archiv 143 (3), 391–415.

    Article  Google Scholar 

  • Bergoeing, R., Kehoe, T. J. (2001), Trade theory and trade facts, Staff Report 284, Federal Reserve Bank of Minneapolis.

    Google Scholar 

  • Brasili, A., Epifani, P., Helg, R. (2000), On the Dynamics of Trade Patterns, De Economist 148 (2), 233–58.

    Article  Google Scholar 

  • Brülhart, M. (1994), Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment, Review of World Economics/Weltwirtschaftliches Archiv 127 (3), 600–613.

    Google Scholar 

  • Cameron, G., Proudman, J., Redding, S. (2005), Technological convergence, R&D, trade and productivity growth. European Economic Review 49, 775–807.

    Article  Google Scholar 

  • Central Bank of Brazil (2007), www.bcb.gov.br/?TXCAMBIO.

    Google Scholar 

  • Connolly, M. P. (1997), Technological Diffusion through Trade and Imitation, Federal Reserve Bank of New York Staff Reports no. 20.

    Google Scholar 

  • Chan, F., Mancini-Griffoli, T., Pauwels, L. L. (2006). Stability Tests for Heterogeneous Panel Data, HEI Working paper no. 24, Graduate Institute of International Studies, Geneva, Economics Section.

    Google Scholar 

  • Chui, M., Levine, P., Mansoob, M.S., Pearlman, J. (2002), North-South Models of Growth and Trade, Journal of Economic Surveys 16 (2), 123–66.

    Article  Google Scholar 

  • Cuddington, J. T., Urzua, C.M. (1989), Trends and Cycles in the Net Barter Terms of Trade: A New Approach, Economic Journal 99, 426–42.

    Article  Google Scholar 

  • Curtis, J. M., Shenjie, C. (2003), Trade Costs and Changes in Canada’s Trade Pattern, World Economy 26 (7), 975–82.

    Article  Google Scholar 

  • Hoppe, M. (2005), Technology Transfer Through Trade, FEEM Working Paper No. 19.05.

    Google Scholar 

  • Hummels, D. (1999), Toward a Geography of Trade Costs, University of Chicago, mimeo.

    Google Scholar 

  • Irwin, D. A. (2002), Long-run trends in world trade and income, World Trade Review 1, 89–100.

    Google Scholar 

  • James, W. E. (1994), Changing patterns of trade in goods and services in the Pacific region: Market-driven economic integration, Business Economics 29 (2), 14–21.

    Google Scholar 

  • Kaplinsky, R., Santos-Paulino, A. (2006), A disaggregated analysis of EU imports: the implications for the study of patterns of trade and technology, Cambridge Journal of Economics 30 (4), 587–611.

    Article  Google Scholar 

  • Keller, W. (2002), Trade and the Transmission of Technology, Journal of Economic Growth 7 (1), 5–24.

    Article  Google Scholar 

  • Lumenga-Neso, O., M. Olarreaga, M. Schiff, (2001) On ‘indirect’ trade-related research and development spillovers, Policy Research Working Paper Series 2580, The World Bank.

    Google Scholar 

  • Mancini-Griffoli, T., Pauwels, L.L. (2006), Did the euro affect trade? Answers from end-of-sample instability tests. HEI Working Paper no. 04-2006, Graduate Institute of International Studies. Geneva, Economics Section.

    Google Scholar 

  • Proudman, J., Redding, S. (2000), Evolving Patterns of International Trade, Review of International Economics 8 (3), 373–396.

    Article  Google Scholar 

  • Puga, F. P. (2006), Porque crescem as exportações brasileiras, BNDES Visão do Desenvolvimento no. 1, http://www.bndes.gov.br/conhecimento/visao/visao_01.pdf (last visit: 08 September 2008).

    Google Scholar 

  • Requena-Silvente, F., Walker, J. (2007), Is Inequality Harmful for North-South Intra-Industry Trade Growth?, International Trade Journal XXI(1), 25–52.

    Article  Google Scholar 

  • Sachs, J., Yang, X., Zhang, D. (2002), Pattern of Trade and Economic Development in a Model of Monopolistic Competition, Review of Development Economics 6(1), 1–25.

    Article  Google Scholar 

  • Stehrer, R., Wörz, J. (2003), Technological convergence and trade patterns, Review of World Economics/Weltwirtschaftliches Archiv 139 (2), 191–219.

    Article  Google Scholar 

  • Uchida, Y., Cook, P. (2005), The effects of competition on technological and trade competitiveness, The Quarterly Review of Economics and Finance 45 (2–3), 258–283.

    Article  Google Scholar 

  • Wacziarg, R., Welch, K.H. (2003), Trade Liberalization and Growth: New Evidence, NBER Working Paper No. 10152.

    Google Scholar 

  • WITS (2007), World Bank, http://wits.worldbank.org/

    Google Scholar 

  • World Economic Outlook (2007), IMF, available at: http://imf.org/external/pubs/ft/weo/2007/01/index.htm.

    Google Scholar 

  • Yi, K.M. (2003), Can Vertical Specialization Explain the Growth of World Trade?, Journal of Political Economy 111 (2), 52–102.

    Article  Google Scholar 

  • Zaghini, A. (2005), Evolution of trade patterns in the new EU member states, The Economics of Transition 13 (4), 629–658.

    Article  Google Scholar 

  • Zanias, G. (2005), Testing for Trends in Terms of Trade Between Primary Commodities and Manufactured Goods, Journal of Development Economics 78 (1), 49–59.

    Article  Google Scholar 

  • Zhang, W. B. (1994), Knowledge, growth and patterns of trade, Annals of Regional Science 28 (3), 285–304.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer-Verlag Wien

About this chapter

Cite this chapter

Zeidan, R.M. (2009). Evolving Patterns of Trade between Brazil and the European Union 1994–2005. In: Tondl, G. (eds) The EU and Emerging Markets. Schriftenreihe der Österreichischen Gesellschaft für Europaforschung (ECSA Austria) / European Community Studies Association of Austria Publication Series, vol 12. Springer, Vienna. https://doi.org/10.1007/978-3-211-92662-8_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-211-92662-8_7

  • Publisher Name: Springer, Vienna

  • Print ISBN: 978-3-211-92661-1

  • Online ISBN: 978-3-211-92662-8

Publish with us

Policies and ethics