To leave or to stay? Uruguay and Paraguay within the Mercosur

Elvio Accinelli and Pedro Suárez ()
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Pedro Suárez: UASLP, Facultad de Economía, San Luis Potosí, México

No 608, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: The main objective of this paper is to show that when countries conforming a block that makes what some specialists have called: regionalism or integration -- having between them big asymmetries -- the policy to threat to leave the block can be a very efficient policy for those countries more harmed by the presence of such asymmetries. In particular in this article we analyze the current situation inside of the Southern Common Market or at it is better known in Latin America as MERCOSUR.

Keywords: Asymmetries; Integration; Nash Equilibria (search for similar items in EconPapers)
JEL-codes: F42 F51 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2008-03
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Persistent link: https://EconPapers.repec.org/RePEc:ude:wpaper:0608

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