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

Author

Listed:
  • Elvio Accinelli

    (UASLP, Facultad de Economía, San Luis Potosí, México)

  • Pedro Suárez

    (UASLP, Facultad de Economía, San Luis Potosí, México)

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.

Suggested Citation

  • Elvio Accinelli & Pedro Suárez, 2008. "To leave or to stay? Uruguay and Paraguay within the Mercosur," Documentos de Trabajo (working papers) 0608, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:0608
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    File URL: https://hdl.handle.net/20.500.12008/2097
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    More about this item

    Keywords

    Asymmetries; Integration; Nash Equilibria;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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