economic integration and location of production activities: the case of mercosur

A1. Specialization Patterns

Table A1.6a

Explanatory variable

Definition pop i =

Size 1: Population share

POPi N

∑ POP

i

i =1

INDGDPi

ind i =

Size 2: Industrial GDP share

N

∑ INDGDP

i

i =1

gdp i =

Size 3: GDP share

GDPi N

∑ GDP

i

i =1

M

openi =

Openness

∑ (X k =1

k

+Mk ) ki

M

∑ PV k =1

regopen1i = pt i

Regional Openness 1

∑ (X M

Regional Openness 2

k

regopen2 = * i

k =1

Mer cos ur k

+ M kMer cos ur

M

+ M ki )

∑ (X k =1

ki

*after regression on country fixed effects

where Countries: i=1,…,N Industries: k=1,…,M PV= Production Value X=Exports M= Imports pt= (Average) Preferential Tariffs to Mercosur partners

91

)