South-South Trade Agreements, Location of Production and Inequality in Latin America

Abstract

This study aims at evaluating the relation between South-South trade agreements, location of production and inequality in Latin Amer- ican RTAs. Following Sanguinetti et al.(2004) and Midelfart-Knarvik et al.(2000), an empirical model will be estimated to check whether industry localization was affected by the agreement. An ending sec- tion will then evaluate the overall impact of trade agreements on ¾ -convergence, i.e. the standard deviation of income levels of countries belonging to the same agreement.