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Regionalization of Latin America based on asymmetries in the absorptive capacity of countries

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  • González, Germán Héctor
  • García-González, Juan David
  • Gómez-Medina, José Santiago
  • Corbella, Virginia Inés

Abstract

Latin America has a rich history of regional integration agreements with no sustained success. One possible explanation is that these agreements mainly depend on political considerations and do not have a solid basis at the level of private agents. Opposite to the previous literature on regionalism, a method founded on asymmetric economies is proposed in this work. Based on the identification of sources and manifestations of asymmetries, a club clustering proposal of countries is provided. The study involves 67 variables, 20 countries from Latin America, and a period between 1985 and 2008. The results reveal that the existing agreements are not based on the countries' asymmetries, then, the achievement of a successful continental integration is unlikely under the current circumstances.

Suggested Citation

  • González, Germán Héctor & García-González, Juan David & Gómez-Medina, José Santiago & Corbella, Virginia Inés, 2023. "Regionalization of Latin America based on asymmetries in the absorptive capacity of countries," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).
    • Handle: RePEc:eee:joecas:v:27:y:2023:i:c:s1703494923000038
    DOI: 10.1016/j.jeca.2023.e00291
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    More about this item

    Keywords

    Regionalism; Integration agreements; Asymmetries; Convergence clubs; Latin America;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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