The Effects of Unequal Size

This article assesses the current and future levels of North American integration. Econometric models that compare integration around the world indicate that integration deepens when countries have similar domestic, political, and economic institutions, and are economically asymmetrical. It is theorized that similar domestic institutions reduce transaction costs and uncertainty of success for firms while economic asymmetry provides incentives for and coordination among member states. In addition, institutional homogeneity also affects the level of integration. Currently, the North American partners lack high levels of these conditions, which explains the low level of integration. The analysis concludes with policy recommendations to improve the necessary conditions for the deepening of economic integration. Este artículo evalúa los niveles actuales y futuros de integración de Norteamérica. Modelos econométricos que comparan la integración alrededor del mundo indican que la integración se profundiza cuando los países tienen instituciones domesticas políticas y económicas similares, y económicamente asimétricas. Se especula que instituciones domésticas similares reducen los costos de transacción e incertidumbre de éxito para las empresas mientras que la asimetría económica provee incentivos para, y coordinación entre, los estados miembros. Además, la homogeneidad institucional afecta también los niveles de integración. Actualmente, los socios Norteamericanos carecen de altos niveles de tales condiciones, lo que explica el bajo nivel de integración. El análisis concluye con recomendaciones de políticas para aumentar las condiciones necesarias para profundizar la integración.

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MERCOSUR and the Brazilian Leadership Challenge in the Era of Chinese Growth: A Uruguayan Foreign Policy Perspective

Urdínez¹,

Burian

Oliveira

2016

New Global Studies

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In recent years, China has expanded its presence in Latin America leading to increased trade flows, foreign direct investment, and bilateral cooperation agreements. At the same time, Brazil has attempted to emerge as a global player from its belief in itself as a regional leader. While both countries are part of the emerging South, they are also competing for influence in the South American area. We hypothesize that for MERCOSUR members, deepening commercial ties with China would be a viable option to counterbalance Brazil’s regional leadership, using Uruguayan legislators preferences as a tool for our study. Using logistic models, we conclude that that the probability of supporting a hypothetical free trade agreement with China is larger when politicians viewed MERCOSUR as an obstacle to the interests of his or her country and when he or she had doubts about Brazilian

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The Effects of Unequal Size

Cited by 4 publications

References 8 publications

Power Asymmetries

Power Asymmetries

Does North America Have the Right Stuff? An Analysis of Compatibility and the Potential Deepening of North American Integration

MERCOSUR and the Brazilian Leadership Challenge in the Era of Chinese Growth: A Uruguayan Foreign Policy Perspective

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