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Convergence Dynamics in Mercosur

Author

Listed:
  • Blyde, Juan S.

    (Inter-American Development Bank)

Abstract

According to the traditional theory of international trade, a gradual opening of trade teamed with migration would make initially asymmetric regions more symmetric. In stark contrast, the new economic geography models show that factor mobility and opening may eventually exaggerates initial differences across regions. The mere possibility that uneven development may arise as a result of larger integration renders interesting analyzing the evolution of income disparities in Mercosur after more than a decade of economic integration. This is the main purpose of this paper. The study indicates that income disparities across Mercosur countries and regions have indeed increased during the 1990s. A preliminary analysis regarding the impact of the creation of Mercosur, however, shows that the integration process might not be at the origin of this trend.

Suggested Citation

  • Blyde, Juan S., 2006. "Convergence Dynamics in Mercosur," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 784-815.
    • Handle: RePEc:ris:integr:0378
    as

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    Citations

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    Cited by:

    1. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2013. "Una aplicación de los árboles de expansión mínima y árboles jerárquicos al estudio de la convergencia interregional en dinámica de regímenes || An Application of Minimum Spanning Trees and Hierarchica," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 15(1), pages 3-28, June.
    2. Jose Pineda, 2000. "Convergence Dynamics in the Andean Community," Regional and Urban Modeling 283600074, EcoMod.
    3. García Callejas, Danny, 2011. "Per Capita GDP Convergence in South America, 1960-2007," Borradores Departamento de Economía 8983, Universidad de Antioquia, CIE.
    4. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2012. "Convergencia interregional en dinámica de regimenes: el caso del Mercosur [Regional convergence of dynamic of regimens: the case of Mercosur]," MPRA Paper 36863, University Library of Munich, Germany.
    5. Paola Barrientos, 2007. "Theory, History and Evidence of Economic Convergence in Latin America," Development Research Working Paper Series 13/2007, Institute for Advanced Development Studies.
    6. Mauricio Mesquita Moreira, 2009. "Brazil's Trade Policy: Old and New Issues," IDB Publications (Working Papers) 9295, Inter-American Development Bank.
    7. Tom Van Ourti & Philip Clarke, 2008. "The Bias of the Gini Coefficient due to Grouping," Tinbergen Institute Discussion Papers 08-095/3, Tinbergen Institute.
    8. Mesquita Moreira, Mauricio, 2009. "Brazil's Trade Policy: Old and New Issues," IDB Publications (Working Papers) 2508, Inter-American Development Bank.

    More about this item

    Keywords

    Integration; Income Disparities; Agglomeration;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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