This paper explores the determinants of MERCOSUR-EU bilateral trade flows for 28 manufacturing sectors. In doing so, a gravity equation is estimated for 16 countries for the period 1991-2004. Asexpected, the combined output of trade partners, the distance between them, their population and a number of other control variables seem to explain the bilateral trade flows of manufactures.
Economic integration; MERCOSUR; EU; Gravity equation
