Exports from the Brazilian automotive sector to the Southern Common Market: Trade diversion or cost reduction?

The automotive sector is one of the sectors in which trade between mercosur countries has grown most strongly. This article examines the possibility that trade diversion occurred in that sector during the period 1991-2010, assuming that product costs fell as a result of market expansion. The analysis is based on the concepts of “cost reduction” and “trade suppression” coined by Corden (1972), which capture the effects of economies of scale. Indices of regional orientation and revealed comparative advantages are used in combination to assess whether the trade bloc is evolving in line with comparative advantages. The results suggest efficiency gains for automotive-sector products, exports of which from Brazil to mercosur grew more vigorously because the expanded and relatively protected market made it possible to exploit the economies of scale that are characteristic of the automotive industry.

Comparing emergy accounting with well-known sustainability metrics: The case of Southern Cone Common Market, Mercosur

The quality and the power of human activities affect the external environment in different ways that can be measured and evaluated by means of several approaches and indicators. While the scientific community has been publishing several proposals for sustainable development indicators, there is still no consensus regarding the best approach to the use of these indicators and their reliability to measure sustainability. It is important, therefore, to question the effectiveness of sustainable development indicators in an effort to continue in the search for sustainability. This paper compares the results obtained with emergy accounting with five global Sustainability Metrics (SMs) proposed in the literature to verify if metrics are communicating coherent and similar information to guide decision makers towards sustainable development. Results obtained using emergy indices are discussed with the aid of emergy ternary diagrams. Metrics are confronted with emergy results, and the degree of variability among them is analyzed using a correlation matrix created for the Mercosur nations. The contrast of results clearly shows that metrics arrive at different interpretations about the sustainability of the nations studied, but also that some metrics may be grouped and used more prudently. Mercosur is presented as a case study to highlight and explain the discrepancies and similarities among Sustainability Metrics, and to expose the extent of emergy accounting. (C) 2010 Elsevier Ltd. All rights reserved.

The Time-Series Properties on Housing Prices: A Case Study of the Southern California Market

We examine the time-series relationship between housing prices in eight Southern California metropolitan statistical areas (MSAs). First, we perform cointegration tests of the housing price indexes for the MSAs, finding seven cointegrating vectors. Thus, the evidence suggests that one common trend links the housing prices in these eight MSAs, a purchasing power parity finding for the housing prices in Southern California. Second, we perform temporal Granger causality tests revealing intertwined temporal relationships. The Santa Anna MSA leads the pack in temporally causing housing prices in six of the other seven MSAs, excluding only the San Luis Obispo MSA. The Oxnard MSA experienced the largest number of temporal effects from other MSAs, six of the seven, excluding only Los Angeles. The Santa Barbara MSA proved the most isolated in that it temporally caused housing prices in only two other MSAs (Los Angels and Oxnard) and housing prices in the Santa Anna MSA temporally caused prices in Santa Barbara. Third, we calculate out-of-sample forecasts in each MSA, using various vector autoregressive (VAR) and vector error-correction (VEC) models, as well as Bayesian, spatial, and causality versions of these models with various priors. Different specifications provide superior forecasts in the different MSAs. Finally, we consider the ability of theses time-series models to provide accurate out-of-sample predictions of turning points in housing prices that occurred in 2006:Q4. Recursive forecasts, where the sample is updated each quarter, provide reasonably good forecasts of turning points.

Le Brésil et le MERCOSUR : étude des stratégies de recherche de l'autonomie et de la puissance

Ce mémoire a pour objet de recherche le Marché commun du Sud (MERCOSUR) et le Brésil. La problématique est de comprendre pourquoi les États membres du MERCOSUR ne sont pas, à ce jour, parvenus à la création d’un marché commun dans le Cône Sud. Pour ce faire, nous pensons qu’en plus des causes généralement admises dans la littérature (asymétries, divergences d’intérêts et obstacles au niveau économique), il faut davantage mettre l’accent sur l’augmentation de la puissance du Brésil et les stratégies de recherche de l’autonomie. Les hypothèses avancées sont les suivantes : (1) la stratégie de recherche de l’autonomie par la participation a favorisée la création ainsi que l’approfondissement du MERCOSUR durant ses premières années d’existence; (2) la montée en puissance du Brésil et la stratégie de recherche de l’autonomie par la diversification qui en découle ont réduit l’importance du MERCOSUR pour le Brésil et miné l’approfondissement de cette institution d’intégration économique. Pour ce faire, nous analyserons en parallèle les différentes stratégies de recherche de l’autonomie ainsi que l’évolution du MERCOSUR. Nous utiliserons le PIB comme principal indicateur économique afin de témoigner de la montée en puissance du Brésil entre 1990 et 2012.

Obstáculos políticos en el proceso de integración CAN-MERCOSUR

La monografía plantea estudiar los procesos de integración de la Comunidad Andina (CAN) y el Mercado Común del Sur (MERCOSUR), desde la teoría del Institucionalismo Liberal, en la cual la cooperación es la herramienta que fortalece el proceso de integración, permitiendo la creación de instituciones para dar continuidad a los procesos y acuerdos. En el desarrollo de este trabajo se emplea como marco teórico los postulados realizados por Ernst B. Haas y León Lindberg como eje central de estudio, y a su vez se toma como ayuda conceptos emitidos por Robert O. Keohane y Andrew Moravcsik, para complementar y facilitar la exploración y el estudio de los procesos de integración desarrollados en Suramérica.

The Impact of Domestic Politics and International Changes on the Brazilian Perception of Regional Integration

This article aims to analyze the impact of domestic politics and international changes that influence Brazilian positions regarding regional integration processes in South America, particularly the Southern Common Market, Mercosur. The dynamics of the international system and their impact on the evolution of the elite's perception of the role the country should play in the world are important variables for understanding these positions. The state's postures in relation to integration were and are based on a real interest, but this interest is also linked with the objective of ensuring better conditions for participation in other international arenas. Starting with the hypothesis that transformations in the international setting have strongly influenced Brazil's positioning, the elements of continuity and change in the country's behavior toward Mercosur are identified, with domestic politics as the main explanation.

Economic Survey of Latin America and the Caribbean 2010-2011: Internacional integration and macroeconomic policy challenges amid global economic turmoil

Includes bibliography

Latin America and the Caribbean in the World Economy 2007: 2008 trends

Includes bibliography

Latin America and the Caribbean in the World Economy 2009-2010: A crisis generated in the centre and a recovery driven by the emerging economies

Incluye Bibliografía

Multilateral rules on competition policy: an overview of the debate

Includes bibliography

Internationalization and technology in MERCOSUR

Includes bibliography

Impact of the European common market: draft resolution approved by Committee I on 25 May 1957

Includes bibliography

Reducing Legal Uncertainty: A Challenge for Subregional Integration in Latin America and the Caribbean

Despite the recovery in intraregional trade over the past three years, intra-group trade, that is trade within the Southern Common Market (MERCOSUR), the Andean Community (CAN) and the Central American Common Market (CACM), remains much weaker than that observed within similar groups in other regions of the world. This weakness is due essentially to the serious lack of complementarity in the process of eliminating tariff barriers (see chapter 3 of Latin America and the Caribbean in the World Economy 2004: Trends 2005, and the study on regional integration entitled: "América Latina y El Caribe: La integración regional en la hora de las definiciones", which is due to be published shortly and which updates basic information for the year 2005). The reasons include (a) weak institutional capacities; (b) the lack of macroeconomic coordination; (c) inadequate infrastructure and d) the lack of depth in integration-related trade disciplines.  This edition of the Bulletin reviews the mechanisms for dispute settlement within Mercosur, the Andean Community and CACM with a view to drawing conclusions on the extent to which they are used. In order to reform such mechanisms, consideration should be given to the creation of a single dispute settlement mechanism which would replicate the procedures and regulations of the World Trade Organization (WTO).

Trade Facilitation as Part of Creating the Free Trade Area of the Americas (FTAA)

The content of this article is the natural continuation of both FAL Bulletin No. 167 and FAL Bulletin No. 171. FAL Bulletin No. 167 advanced conceptually in the definition of the term trade facilitation and a general explanation of how some international bodies and the FTAA process itself deal with this issue. This month's article expands on the information regarding trade facilitation within the FTAA, which brings together the sizeable number of 34 countries from the Western Hemisphere.Similarly, taking into account that FAL Bulletin No. 171 reported on some progress toward trade facilitation regulations within the framework of the Southern Common Market (Mercosur), the current article takes a complementary approach, reporting on developments favourable to trade facilitation in another agreement for economic integration, which basically proposes the creation of a free trade area.