External vulnerabilities and economic integration. Is the Union of South American Nations a promising project?
AbstractThis article addresses the reactions of the Union of South American Nations (UNASUR) economies to external shocks. Because it was conceived as a political alliance, the UNASUR is likely to be a promising integration project. Thus, assessing the union from an economic perspective is essential. Using a structural vector autoregression (SVAR) approach, this study assesses the external monetary, commercial and -financial vulnerability of the bloc members, together with their preferences for stabilization tools (monetary or fi-scal instruments) and the level of convergence. The results reveal mutual weaknesses to overcome and a considerable synchronization level within the UNASUR. Evidence of positive integration prospects is found.
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Bibliographic InfoPaper provided by Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure in its series Working Papers with number 1238.
Date of creation: 2012
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Other versions of this item:
- 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, vol. 39(2), pages 97-131, June.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- D9 - Microeconomics - - Intertemporal Choice
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-19 (All new papers)
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