The Successes, Failures and Future of Mercosur

Schelhase, Marc

doi:10.1057/9780230294837_10

Cited by 4 publications

(3 citation statements)

References 8 publications

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“…The degree of long-run capital mobility initially decreased, but starting from to 1989–2008, it has been steadily increasing. The increase can arise from the steady reduction in tariff barriers, a large inflow of foreign direct investment (FDI), and the reorganization of production networks (Schelhase, 2010). The short-run coefficients indicate that short-run capital mobility has been steadily increasing and remained relatively high throughout the estimated period.…”

Section: Resultsmentioning

confidence: 99%

Capital mobility in Latin American and Caribbean countries: alternative view on the “Feldstein-Horioka” coefficient

Yersh

2022

IJOEM

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PurposeThe purpose of this study is to examine two issues, namely the degree of current account deficit (CAD) sustainability and the degree of capital mobility.Design/methodology/approachThe sample for this study comprises 24 Latin American and Caribbean countries, including three regional agreements: Andean Community, MERCOSUR (Mercado Común del Sur), and SICA (Central American Integration System). This study employs the dynamic common correlated effects mean group (DCCEMG) estimator in a panel data set to investigate the long-run relationship between savings and investment along with short-run dynamics.FindingsThe findings indicate that CAD is weakly sustainable in the Latin American and Caribbean region, MERCOSUR, and SICA, while CAD is strongly unsustainable in the Andean Community. The sub-period analysis reveals that CAD has been adversely affected by the 2008 crisis. However, in the post-crisis period, CAD has been slowly decreasing in the Latin American and Caribbean region and Andean Community, whereas CAD has continued increasing in MERCOSUR and SICA. Further, the estimates of error-correction terms and short-run coefficients indicate that the Andean Community and MERCOSUR observe a higher degree of long-run and short-run capital mobility than SICA.Practical implicationsThe results carry fundamental implications for policy-making processes aimed at maintaining sustainable CADs.Originality/valueThis study gives an alternative interpretation of the “Feldstein-Horioka” coefficient in terms of CAD sustainability and analyses the saving–investment relationship in light of Chudik and Pesaran (2015).

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Section: Resultsmentioning

confidence: 99%

Capital mobility in Latin American and Caribbean countries: alternative view on the “Feldstein-Horioka” coefficient

Yersh

2022

IJOEM

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“…For example, a common external tariff (CET) has faced barriers to be fully implemented due to a long list of exceptions for sensitive products, such as motor vehicles and sugar (Doctor 2013). From the institutional perspective, some of the problems are based on the desire to maintain national control over the integration process as underlined by the poor implementation of Mercosur decisions and norms into domestic law (Schelhase 2011). Malamud (2008) indicates that in 2005-2006 half of Mercosur regulations that require transposition were not in force and more than half of Mercosur norms also contained confidential annexes, which paved the way for a national veto opportunity or an obstacle for practical implementation of Mercosur's agreements (Hummel and Lohaus 2012).…”

Section: 1057/9781137321282 -Eu Foreign Policy Towards Latin Amerimentioning

confidence: 99%

EU Foreign Policy towards Latin America

Domínguez

2015

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Thanks to consecutive rounds of enlargement and the stepwise broadening and deepening of internal integration, the EU now undeniably plays a key role in international politics, law and economics. At the same time, changes in the international system continue to pose new challenges to the EU. The range of policies implied by the EU's international 'actorness' grows with every summit, and the EU regularly 'imports' and increasingly 'exports' various policies.Against this backdrop, this book series aims to be a central resource for the growing community of scholars and policy-makers interested in understanding the interface between the EU and international affairs. It will provide in-depth, cutting-edge contributions to research on the EU in international affairs by highlighting new developments, insights, challenges and opportunities. It will encompass analyses of the EU's international role, as mediated by its own Member States, in international institutions and in its strategic bilateral and regional partnerships. It will further examine the ongoing profusion of EU internal policies with external implications and the ways in which these are both driven by and feed back into international developments. Grounded in political science (and its various sub-disciplines, including International Relations and International Political Economy), law, sociology and history, the series reflects an inter-disciplinary commitment.

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“…By the mid-1990s, these actors started debating the labour, so-cial, and environmental problems arising from integration; yet, regional networks, including the Southern Cone Coordinator of Central Trade Unions, viewed MERCOSUR as a mechanism to strengthen social and environmental standards and regulations (Botto, 2004). Similarly, as intra-bloc trade and investment grew, business devised new regional forms of interest representation (Schelhase, 2010).…”

Section: Mercosur Politicization and External Relationsmentioning

confidence: 99%

Politicization and Regional Integration in Latin America: Implications for EU–MERCOSUR Negotiations?

Bianculli

2020

PaG

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Regional integration in Latin America has experienced different periods of politicization. The most recent goes back to the 2000s and is related to the domestic political changes resulting from the so-called ‘left turn’ which sought alternative economic and development policies to neoliberalism as the state regained centrality. These transformations led to a broad process of politicization of regionalism which changed the terms of the debate surrounding whether regional integration and free trade are the only way for these countries to integrate regionally and internationally. Analyses have thus underscored the postliberal character of this phase of regionalism as reflected in the greater weight of social and political agendas at the expense of economic and trade issues. The Common Market of the South (MERCOSUR) was no exception to this trend. However, in 2010 the bloc rather surprisingly agreed to relaunch negotiations with the European Union (EU). Why did MERCOSUR decide to resume these negotiations—stalled since 2004—in a context of high politicization of regional integration? This article argues that internal politicization did not lead to a paralysis of the international agenda. Moreover, internal politicization, coupled with external pressures and the demand for group-to-group negotiations by the EU, drove and supported the conduct of international negotiations. In so doing, this article also contests the idea that after the 2000s, MERCOSUR moved inexorably towards a postliberal model, thus rejecting any trade component. Findings suggest that these accounts may have overemphasized change and underestimated continuities in regional integration dynamics as the case of the external agenda shows.

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The Successes, Failures and Future of Mercosur

Cited by 4 publications

References 8 publications

Capital mobility in Latin American and Caribbean countries: alternative view on the “Feldstein-Horioka” coefficient

Capital mobility in Latin American and Caribbean countries: alternative view on the “Feldstein-Horioka” coefficient

EU Foreign Policy towards Latin America

Politicization and Regional Integration in Latin America: Implications for EU–MERCOSUR Negotiations?

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