Regional integration: what in it for CARICOM ?

Mauricio Moreira and Eduardo Mendoza
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Eduardo Mendoza: Instituto para la Integración de América Latina y el Caribe, INTAL

No 1458, INTAL Working Papers from Inter-American Development Bank, INTAL

Abstract: La integración política y económica se ha constituido en un tema neurálgico de la agenda caribeña. Este trabajo analiza literatura sobre comercio, crecimiento y acuerdos regionales para discutir sobre la motivación que subyace en la región del Caribe por la integración, los resultados obtenidos hasta ahora y con qué cuentan a futuro. Se analiza con la ayuda de la estadística descriptiva, un modelo de crecimiento empírico y un modelo gravitacional que establecen que los beneficios tradicionales relacionados al comercio que se derivan de la integración regional han estado, y están, destinados a estar limitados debido a (1) el alto grado de apertura de los países; (2) el tamaño limitado del mercado "común" agrandado; y (3) la dotación factorial relativamente similar de los países. El documento también señala que las ganancias en el área de "no comerciables" - debido a las economías de escala y que no se pueden mitigar por medio del comercio y la apertura - pueden ser sustanciales = Economic and political integration have been a perennial and neuralgic issue in the Caribbean agenda. This paper draws on the literature on trade, growth and regional agreements to discuss the motivation behind the Caribbean drive for integration, the results obtained so far and what is in stock for the future. It argues, with the help of descriptive statistics, an empirical growth model and a gravity model, that the traditional, trade related gains from regional integration have been and are bound to be limited because of (1) the countries' high openness; (2) the limited size of the "common", enlarged market; and (3) the countries' relatively similar factor endowments. It also argues, though, that gains in the area of "non-tradables", due to economies of scale which cannot be mitigated by trade and openness, can be substantial = A integraçao política e econômica tornaram-se uma questao nevrálgica da agenda caribenha. Este trabalho analise a literatura sobre comercio, crescimento e acordos regionais para discutir as motivaçoes que determinam a integraçao caribenha, os resultados obtidos ate o momento e, como podem influenciar o futuro. E analisado, com a ajuda de estatísticas, um modelo de crescimento empírico e um modelo gravitacional que mostram que os resultados do comercio foram e estao destinados a serem limitados devido os seguintes motivos: (a) Alto grau de abertura comercial destes países; (b) Tamanho limitado do mercado comum aumentado pela integraçao ; (c) Dotaçao similar de recursos dos países membros. O trabalho conclui que os benefícios nao comerciais podem ser substanciais

Keywords: CARIBBEAN COMMUNITY; CARICOM; INTEGRACION REGIONAL; COMERCIO INTRARREGIONAL (search for similar items in EconPapers)
JEL-codes: F1 F15 F2 (search for similar items in EconPapers)
Pages: 55 p.
Date: 2007-04
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Regional Integration: What is in it for CARICOM? (2007)
Working Paper: Regional integration: what is in it for CARICOM? (2007)
Working Paper: Regional Integration: What is in it for CARICOM? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:intalp:1458

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