Over the last fifteen years, Argentina, Brazil, Paraguay and Uruguay have implemented major economic reforms including unilateral trade liberalization programs and the constitution of a regional trade bloc, Mercosur. This trade policy change has led to a reallocation of resources across sectors...

Economic integration leads to a reallocation of resources across sectors and space. Location patterns resulting from North-North and North-South regional trade initiatives have been documented in several studies. However, empirical evidence on South-South agreements is rather limited. In this...