This paper explores the determinants of bilateral trade flows between Mercosur countries. To this aim, a gravity model is applied to annual bilateral exports between 75 countries in 1980–2008. The model is augmented with variables that are relevant in determining the volume and direction of international trade using two alternative estimation methods; pooled ordinary least squares and panel fixed effects. The results reveal that the influence of the agreement on trade has been positive but moderate. As a whole, Mercosur has had positive effects, and this agreement can be reinforced with the deepening of their relationships and the entry of new members.

Agriculture is the main driving force of rural economies so there is a need to promote sustainable rural development and hence improve the living conditions of local communities. This article analyses the role of agricultural policies in reducing poverty in rural communities. Two aspects will be analysed: firstly, whether there has been a reduction in poverty in the basins analysed for the period 2006–2013; and secondly, whether that poverty reduction, to the extent that it has occurred, has been due to the agricultural policies applied. The analysis shows that the agricultural policies implemented helped to diversify and enhance agricultural production, so that a reduction in effective poverty occurred. However, these policies need to work jointly and in harmony with other economic sectors.

The persistency of poverty around the world is one of the most serious problems that humanity has to face, so in order to arise awareness, it is essential that the measurement of such problem is improved. These improvements also give the incentive to carry out motivating actions, design good policies, gauging progress, and enable holding political leaders accountable for meeting targets. To help make this possible, we provide an examination of how poverty is currently measured, bringing together evidence on the nature and extent of poverty in 91 countries around the world. This article presents research using the Rasch model, an inductive method which uses a synthetic-analytical process. This method enables us to provide a comparison of poverty among countries and identifies the main factors that contribute to it.

This article analyses the evolution of Community expenditure, on the basis of the data given in the budget and in the EDF, from the origin of the process in 1957 until the year 2002, the last definitive figures. The technique of principal component factor analysis has been applied to these variables. The basic objective of this study is to detect the interrelationships among the policies of the Union and to effect a classification of them, in order to detect the priorities of the European project and to estimate the dimension of the impact of its policies during the period.