Does Premiere re-render video clips if they match the sequence settings?

I am new to using Premiere Pro CS5.5 and also a consumer lacking a detailed understanding of digital video inner workings, so excuse me if my question is obvious. I have some older video clips, roughly 15-30 minutes in length. I would like to combine these into one file - without any loss of quality if possible. So for example I imported two clips of the same format into PP. I created a new sequence by dragging one of the clips to the magic button. Then I drug the second clip and placed it right after the first on the same sequence. I made no other changes - no transitions, titles, effects etc. Then I exported the sequence where I selected use the same settings as the sequence.
Two questions: 1) will PP re-encode/re-render the video such that I lose quality? 2) if you were simply trying to combine two or three video clips / files into one, would you go about it as I did here or would you do something different?
Let me know if you need more information and thanks.

The clips were orginally on miniDV tape, captured with Ulead/Corel VideoStudio in 2001, then output into another format. I found a shareware utility that reported "MPEG2" as the codec. So I would assume then as you noted these would be re-encoded? Would you expect a loss of quality that would be noticeable? Combing these clips isn't required, just some housekeeping. What would you do here? Thanks for the help.
Here is the output from right clicking on properties of one of the clips:
File Path: ***.mpg
Type: MPEG Movie
File Size: 427.8 MB
Image Size: 720 x 480
Frame Rate: 29.97
Source Audio Format: 48000 Hz - compressed - Stereo
Project Audio Format: 48000 Hz - 32 bit floating point - Stereo
Total Duration: 00:12:50:21
Average Data Rate: 567 KB / second
Pixel Aspect Ratio: 0.9091

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Does Premiere re-render video clips if they match the sequence settings?

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