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European integration: what lessons for other regions? The case of Latin America

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  • Dorrucci, Ettore
  • Firpo, Stefano
  • Mongelli, Francesco Paolo
  • Fratzscher, Marcel

Abstract

This paper tests for the hypothesis that institutional integration interacts with economic integration at the regional level. In particular, we ask what lessons can be drawn from the European experience with regional integration for Latin America. Several indicators of institutional and economic integration for both the EU and Latin America are presented. We find that Latin America is currently less economically integrated not only than the European Union today, but in some cases even than the EU at the beginning of its regional integration process. A cluster analysis illustrates that the link between institutional and economic integration has worked both ways throughout the whole EU experience. The more institutional integration went beyond the creation of a customs union and moved towards a common market and an economic and monetary union, the deeper economic integration turned out. Increasing economic integration in turn corroborated and sustained the process of institutional integration. JEL Classification: E42, F15, F33, F41

Suggested Citation

  • Dorrucci, Ettore & Firpo, Stefano & Mongelli, Francesco Paolo & Fratzscher, Marcel, 2002. "European integration: what lessons for other regions? The case of Latin America," Working Paper Series 0185, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20020185
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    Cited by:

    1. Soyoung Kim & Jong‐Wha Lee & Cyn‐Young Park, 2011. "Emerging Asia: Decoupling or Recoupling," The World Economy, Wiley Blackwell, vol. 34(1), pages 23-53, January.
    2. Vinokurov, Evgeny, 2010. "The System of Indicators of Eurasian Integration," MPRA Paper 22227, University Library of Munich, Germany.
    3. Paola Caselli & Andrea Zaghini, 2005. "International specialization models in Latin America: the case of Argentina," Temi di discussione (Economic working papers) 558, Bank of Italy, Economic Research and International Relations Area.
    4. Commendatore, Pasquale & Kubin, Ingrid & Petraglia, Carmelo & Sushko, Iryna, 2014. "Regional integration, international liberalisation and the dynamics of industrial agglomeration," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 265-287.
    5. Gloria O. Pasadilla, 2008. "Financial Services Integration in East Asia : Lessons from the European Union," Finance Working Papers 22680, East Asian Bureau of Economic Research.
    6. Vinokurov, Evgeny, 2009. "Systema Indikatorov Evraziyskoy Integracii
      [The System of Indicators of Eurasian Integration]
      ," MPRA Paper 20914, University Library of Munich, Germany.
    7. Dorrucci, Ettore & Mongelli, Francesco Paolo & Ioannou, Demosthenes & Terzi, Alessio, 2015. "The four unions "PIE" on the Monetary Union "CHERRY": a new index of European Institutional Integration," Occasional Paper Series 160, European Central Bank.
    8. Nikolay Nenovsky & Yorgos Rizopoulos, 2004. "Peut-on mesurer le changement institutionnel du régime monétaire ?," Revue d'Économie Financière, Programme National Persée, vol. 75(2), pages 17-36.
    9. Nikolay Nenovsky & Yorgos Rizopoulos, 2004. "Measuring the Institutional Change of the Monetary Regime in a Political Economy Perspective (Groups of interest and monetary variables during the Currency Board introduction in Bulgaria)," William Davidson Institute Working Papers Series wp732, William Davidson Institute at the University of Michigan.
    10. Aldaz-Carroll, Enrique, 2006. "Regional approaches to better standards systems," Policy Research Working Paper Series 3948, The World Bank.
    11. Itai Agur & Ettore Dorrucci & Francesco Mongelli, 2007. "Testing the Links between Institutional Integration and Trade Deepening: Clues from Europe," Open Economies Review, Springer, vol. 18(5), pages 599-612, November.
    12. Michael D. Bordo, 2004. "The United States as a Monetary Union and the Euro: A Historical Perspective," Cato Journal, Cato Journal, Cato Institute, vol. 24(1-2), pages 163-170, Spring/Su.
    13. Bob Deacon & Philippe De Lombaerde & Maria Cristina Macovei & Sonja Schröder, 2011. "Globalisation and the emerging regional governance of labour rights," International Journal of Manpower, Emerald Group Publishing, vol. 32(3), pages 334-365, June.
    14. Pariwat Kanithasen & Vacharakoon Jivakanont & Charnon Boonnuch, 2011. "AEC 2015: Ambitions, Expectations and Challenges ASEAN's Path towards Greater Economic and Financial Integration," Working Papers 2011-03, Monetary Policy Group, Bank of Thailand.
    15. Emilie Rutledge, 2008. "Is EMU a viable model for monetary integration in the Arabian Gulf?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 11(2), pages 123-134.
    16. Katja Mann, 2015. "The EU, a Growth Engine? The Impact of European Integration on Economic Growth in Central Eastern Europe," FIW Working Paper series 136, FIW.
    17. Christiane Krieger-Boden & Rüdiger Soltwedel, 2013. "Identifying European Economic Integration and Globalization: A Review of Concepts and Measures," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1425-1442, October.

    More about this item

    Keywords

    intra-regional exchange rate variability; Regional integration in Europe and Latin America;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F15 - International Economics - - Trade - - - Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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