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External Vulnerabilities and Economic Integration: Is the Union of South American Nations a Promising Project?

Year: 2012

Type: article

Abstract: This article addresses the reactions of the Union of South American Nations (UNASUR) economies to external shocks. Because it was conceived as a political alliance, the UNASUR is likely to be a promising integration project. Thus, assessing the union from an economic perspective is essential. Using a structural vector autoregression (SVAR) approach, this study assesses the external monetary, commercial and financial vulnerability of the bloc members, together with their preferences for stabilization tools (monetary or fiscal instruments) and the level of convergence. The results reveal mutual weaknesses to overcome and a considerable synchronization level within the UNASUR. Evidence of positive integration prospects is found.

Source: Journal of Economic Development

DOI: 10.35866/caujed.2014.39.2.005

Author: Andrea Gabriela Bonilla Bolaño

Institutions: Université Lumière Lyon 2, Groupe d'Analyse et de Théorie Economique Lyon St Etienne

Language: English

Topic: Global Financial Crisis and Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Partnerships for the goals, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W3123545164

FWCI: 1.446

Cites: 65

Cited by: 8

Related to: 10