THE IMPACT OF INFRASTRUCTURE ON TRADE IN THE ANDEAN COMMUNITY

In this article for the Conference on the Future of EU-CAN Relations(2005) the author analyses the Andean countries levels of infrastructure development as a source of integration & competitiveness to argue that economic size marks the level of bargaining a country faces. A brief narrative traces the evolution of the Andean community since 1969. Application & analysis of an augmented trade model for the period of 1939 to 1999 indicates that the Andean Community had a positive impact on trade in the region, that the Preferential Trade Agreement was not relevant prior to 1990, & infrastructure is decisive in choosing a trade partner. The role of infrastructure in trade is concluded to be a major development factor in the decisions about trading partners. J. Harwell