EXTERNAL VULNERABILITIES AND ECONOMIC INTEGRATION: IS THE UNION OF SOUTH AMERICAN NATIONS A PROMISING PROJECT?

Andrea Gabriela Bonilla-Bolaños

Journal of Economic Development, 2014, vol. 39, issue 2, 97-131

Abstract: This study examines the reactions of the Union of South American Nations (UNASUR) economies to external shocks. By using a structural vector autoregression approach, it measures the impact of three external shocks (monetary, commercial, and financial) in the real, monetary, and fiscal economic sectors of seven UNASUR economies, namely Argentina, Bolivia, Brazil, Chile, Colombia, Peru, and Venezuela, and investigates co-movement paths. The results show a non-negligible degree of synchronization across the studied economies, confirming their high external vulnerability. They also suggest that irrespective of size or integration degree, all UNASUR members share mutual weaknesses, which they must fight to overcome.

Keywords: Economic Integration; South America; Structural VAR; UNASUR (search for similar items in EconPapers)
JEL-codes: C32 E42 F41 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.jed.or.kr/full-text/39-2/5.pdf (application/pdf)

Related works:
Working Paper: External vulnerabilities and economic integration. Is the Union of South American Nations a promising project? (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:39:y:2014:i:2:p:97-131

Access Statistics for this article

Journal of Economic Development is currently edited by Sung Y. Park

More articles in Journal of Economic Development from Chung-Ang Unviersity, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sung Y. Park ().