The interregional and intersectoral structure of Mercosur: an application of input-output analysis

The emergence of strengthened and expanded free trade areas have created the need for careful analysis of the nature of internal and external dependence among nations. In this paper, using a set of intercountry input-output tables for 1990, build for the four main countries that are integrated into the Mercosur (Brazil, Argentina, Chile, and Uruguay) it is made an analysis of the economic structure of these countries when taken isolated and when considered as a whole system. In this way it is possible to provide insights into the way in which these economies are integrated, the strength of the integration and the potential consequences of action in one economy on the rest of the system. To achieve this goal the analysis will focuses on the potential of uncovering alternative perspectives about the roles of linkages, multipliers, and key sectors in input-output systems.