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Costs and benefits of an economic integration process: an analysis for Mercosur

Author

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  • Pedro Raffy Vartanian

    (Universidade Presbiteriana Mackenzie (UPM))

Abstract

This paper seeks to analyze the costs and benefits of a process of economic integration for the Mercosur countries. The analysis in the study of Balassa (1964) about the integration types to later make an analysis of agreements under the multilateral trading system. Despite numerous advantages of an integration pro‑ cess, as pointed Whalley (1998), Dornbusch (1986), Fernández (1997), Krueger (1999) and Perroni and Whalley (1994), the benefits cannot be perceived by members of a union as a result of lack of labor mobility and wages inflexibility. The effect due to the lack of benefits, sovereignty in the conduct of policies by each country may be preferred over the costs of integration.

Suggested Citation

  • Pedro Raffy Vartanian, 2012. "Costs and benefits of an economic integration process: an analysis for Mercosur," Revista de Economia Mackenzie (REM), Mackenzie Presbyterian University, Social and Applied Sciences Center, vol. 10(1), pages 39-62, Edição .
    • Handle: RePEc:aft:journl:v:10:1:2012:specialissue:p:39-62
    DOI: -
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