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To leave or to stay? Uruguay and Paraguay within the Mercosur

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Author Info
Elvio Accinelli () (UASLP, Facultad de Economía, San Luis Potosí, México)
Pedro Suárez () (UASLP, Facultad de Economía, San Luis Potosí, México)

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Abstract

The main objective of this paper is to show that when countries conforming a block that makes what some specialists have called: regionalism or integration -- having between them big asymmetries -- the policy to threat to leave the block can be a very efficient policy for those countries more harmed by the presence of such asymmetries. In particular in this article we analyze the current situation inside of the Southern Common Market or at it is better known in Latin America as MERCOSUR.

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File URL: http://decon.edu.uy/publica/2008/0608.pdf
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Publisher Info
Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0608.

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Length: 15 pages
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:ude:wpaper:0608

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Related research
Keywords: Asymmetries; Integration; Nash Equilibria;

Find related papers by JEL classification:
F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
F51 - International Economics - - International Relations and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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