Title Page

Abstract

Contents

Chapter 1. Introduction 10

1.1. Background 10

1.2. Purpose of Research 12

1.3. Significance of the Study 13

Chapter 2. Framework of the Study 15

2.1. International Trade Theories and the Gravity Model 15

2.2. Southern Common Market-MERCOSUR 19

2.2.1. Overview of MERCOSUR intraregional trade 22

2.2.2. Overview of MERCOSUR extra regional trade with Asian Countries 25

2.2.3. Overview of MERCOSUR's trade with Major Trade Partners 28

2.3. Background of MERCOSUR member countries 31

2.3.1. Background on Paraguay's Foreign Trade 31

2.3.2. Background on Brazil's Foreign Trade 35

2.3.3. Background on Argentina's Foreign Trade 39

2.3.4. Background on Uruguay's Foreign Trade 42

Chapter 3. Methodology 47

3.1. Research Method 47

3.2. Research Question 47

3.3. Variables 47

Chapter 4. Empirical Analysis 50

4.1. Gravity Model Equation 50

4.2. Regression results 52

4.2.1. Discussion of results 53

4.3. Descriptive Statistics 57

4.4. Policy Implications 58

4.5. Limitation of the analysis 62

4.6. Suggestions for future analysis 63

Chapter 5. Conclusions 65

5.1. Gravity Model conclusions 65

5.2. Policy Implications Conclusions 66

Bibliography 68

Appendix 72

국문초록 102

Table 2.1. Paraguay's Exports by product Top 10 (2020) 33

Table 2.2. Paraguay's Imports by product Top 10 (2020) 35

Table 2.3. Brazil's Exports by product Top 10 (2020) 37

Table 2.4. Brazil's Imports by product Top 10 (2020) 38

Table 2.5. Argentina's Exports by product Top 10 (2020) 40

Table 2.6. Argentina's Imports by product Top 10 (2020) 42

Table 2.7. Uruguay's Exports by product Top 10 (2020) 44

Table 2.8. Uruguay's Imports by product Top 10 (2020) 45

Table 4.1. Regression Results 52

Table 4.2. Correlation Results 57

Figure 1.1. Variation of GDP Growth 11

Figure 2.1. MERCOSUR member countries 20

Figure 2.2. Intraregional Trade Index MERCOSUR (2011-2020) 23

Figure 2.3. Mercosur's Trade (2011-2020) 25

Figure 2.4. MERCOSUR's Trade with Asian Countries (2011-2020) 26

Figure 2.5. MERCOSUR Exports to Asian Countries (2020) 27

Figure 2.6. MERCOSUR Imports from Asian Countries (2020) 28

Figure 2.7. MERCOSUR's Imports with Major Trade Partners (2011-2020) 29

Figure 2.8. MERCOSUR's Exports with Major Trade Partners (2011-2020) 30

Figure 2.9. MERCOSUR's Trade with Main Partners 31

Figure 2.10. Paraguay's Foreign trade (2011-2020) 32

Figure 2.11. Paraguay's Exports by Country (2020) 32

Figure 2.12. Paraguay's Imports by Country (2020) 34

Figure 2.13. Brazil's Foreign trade (2011-2020) 36

Figure 2.14. Brazil's Exports by Country (2020) 36

Figure 2.15. Brazil's Imports by Country (2020) 38

Figure 2.16. Argentina's Foreign trade (2011-2020) 39

Figure 2.17. Argentina's Exports by Country (2020) 40

Figure 2.18. Argentina's Imports by Country (2020) 41

Figure 2.19. Uruguay's Foreign trade (2011-2020) 43

Figure 2.20. Uruguay's Exports by Country (2020) 44

Figure 2.21. Uruguay's Imports by Country (2020) 45