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Monetary Union and productivity differences in Mercosur countries

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Author Info

  • Mariam Camarero

    (Jaume I University)

  • Renato G. Flôres, Jr.

    (Fundaçao Getulio Vargas)

  • Cecilio R. Tamarit

    (University of Valencia)

Abstract

This paper investigates cross-country productivity convergence for the period 1960-1999. The testing strategy is based on a combination of tests and estimation methods. We use the de…nitions of time-series convergence by Bernard and Durlauf (1995), applying multivariate unit root tests, such as those proposed by Sarno and Taylor (1998). Moreover, in this same multivariate context, the Flôres et al. (1996) and Breuer et al. (1999) tests identify the countries that converge. Based on a sample of the 4 Mercosur countries plus associates (Chile and Bolivia) and Peru our results show evidence of convergence among the four Mercosur countries, both using Argentina and Brazil as benchmark countries. Moreover, some weaker evidence of convergence is also found with Bolivia. In contrast, convergence is rejected with Chile and Peru.

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Bibliographic Info

Paper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 03-04.

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Length: 25 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:aee:wpaper:0304

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Keywords: Stochastic convergence; deterministic convergence; SUR estimation; productivity; Mercosur;

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References

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Citations

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Cited by:
  1. Monteiro, Paulo Klinger, 2004. "First-Price auction symmetric equlibria with a general distribution," Economics Working Papers (Ensaios Economicos da EPGE) 568, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  2. Diamandis, Panayiotis F. & Drakos, Anastassios A., 2011. "Financial liberalization, exchange rates and stock prices: Exogenous shocks in four Latin America countries," Journal of Policy Modeling, Elsevier, Elsevier, vol. 33(3), pages 381-394, May.
  3. Andrea Bonilla Bolanos, 2014. "External Vulnerabilities And Economic Integration: Is The Union Of South American Nations A Promising Project?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, Chung-Ang Unviersity, Department of Economics, vol. 39(2), pages 97-131, June.
  4. Sergio Da Silva & Leandro Stocco & J. Anchieta Neves, 2008. "Is Mercosur an optimum currency area? An assessment using generalized purchasing power parity," Economics Bulletin, AccessEcon, vol. 6(29), pages 1-13.
  5. Jean-Pierre Allegret & Alain Sand-Zantman, 2009. "Does a Monetary Union protect again shocks? An assessment of Latin American integration," Post-Print halshs-00371069, HAL.
  6. Jean-Pierre Allegret & Alain Sand-Zantman, 2008. "Does a Monetary Union protect again foreign shocks? An assessment of Latin American integration using a Bayesian VAR," Post-Print halshs-00269122, HAL.
  7. repec:ebl:ecbull:v:6:y:2008:i:29:p:1-13 is not listed on IDEAS
  8. Allegret, Jean-Pierre & Sand-Zantman, Alain, 2009. "Does a Monetary Union protect against external shocks?: An assessment of Latin American integration," Journal of Policy Modeling, Elsevier, Elsevier, vol. 31(1), pages 102-118.

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