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BOLIVIA AND SOUTH AMERICAN FREE TRADE |
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| Authors: | Henry Thompson Hugo Toledo |
| Affiliation: | 1. Dean Rusk Professor at the Lyndon B. Johnson School of Public Affairs , University of Texas , Austin;2. Professor of Economics , Simon Fraser University;3. Associate Professor of Business , Laredo State University;4. Professor of Management and Marketing , California State University , Fresno;5. Professor of International Finance , Laval University , Canada;6. Cupitt is Assistant Professor of Political Science , University of Georgia |
| Abstract: | The pending merger between the Andean Pact and Mercosur will advance South American free trade. Each member country will have to adjust to free trade and the various sectors of each economy will adjust differently. This article uses a specific factor model of production to predict output changes and income redistribution in Bolivia with South American free trade. Adjustments in outputs and factor prices in the model are substantial. |
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