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MERCOSUR: A new approach to regional integration?

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  • Foders, Federico

Abstract

The purpose of this paper is to empirically analize the economic potential associated with MERCOSUR. Simple import share analysis indicates increasing trade flows between the member states; ex post income elasticities of import demand fail to detect a clear pattern. Estimates of technological specialization reveal a great potential for intra-industry trade between member states. The most important challenge to MERCOSUR seems to be the still uncertain ability of member states to sustain macroeconomic stabilization in the long run.

Suggested Citation

  • Foders, Federico, 1996. "MERCOSUR: A new approach to regional integration?," Kiel Working Papers 746, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:746
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    1. repec:fth:michin:312 is not listed on IDEAS
    2. Richard E. Baldwin, 1995. "What Caused the Resurgence of Regionalism?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 453-463, September.
    3. Azita Amjadi & L. Alan Winters & Alexander Yeats, 1995. "Transport Costs and Economic Integration in the Americas," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 465-488, September.
    4. Brown, Drusilla K & Deardorff, Alan V & Stern, Robert M, 1992. "North American Integration," Economic Journal, Royal Economic Society, vol. 102(415), pages 1507-1518, November.
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    Cited by:

    1. Nunnenkamp, Peter, 1996. "Winners and losers in the global economy: Recent trends in the international division of labour and policy challenges," Kiel Discussion Papers 281, Kiel Institute for the World Economy (IfW Kiel).
    2. -, 2001. "Foreign Investment in Latin America and the Caribbean 2000," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1157 edited by Eclac, September.
    3. Nunnenkamp, Peter, 1997. "Mercosur und EU: institutionalisierte Kooperation als Stimulanz für Handel und Direktinvestitionen?," Open Access Publications from Kiel Institute for the World Economy 1737, Kiel Institute for the World Economy (IfW Kiel).
    4. Nunnenkamp, Peter, 1997. "Herausforderungen der Globalisierung für Brasilien," Open Access Publications from Kiel Institute for the World Economy 1705, Kiel Institute for the World Economy (IfW Kiel).
    5. Pacheco, Ricardo & Nunnenkamp, Peter, 1997. "Wirtschaftliche Integration auf Kosten peripherer Regionen? Chancen und Risiken für den brasilianischen Nordosten im Mercosur," Kiel Working Papers 827, Kiel Institute for the World Economy (IfW Kiel).
    6. Nigel Nagarajan, 1998. "MERCOSUR and Trade Diversion: What Do The Import Figures Tell Us?," European Economy - Economic Papers 2008 - 2015 129, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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