European Integration: What Lessons for Other Regions? The Case of Latin America

51 Pages Posted: 27 Feb 2003

See all articles by Ettore Dorrucci

Ettore Dorrucci

European Central Bank (ECB)

Stefano Firpo

European Central Bank (ECB)

Marcel Fratzscher

DIW Berlin; Centre for Economic Policy Research (CEPR)

Francesco Paolo Mongelli

European Central Bank (ECB); Goethe University Frankfurt

Date Written: October 2002

Abstract

This paper tests for the hypothesis that institutional integration interacts with economic integration at the regional level. In particular, we ask what lessons can be drawn from the European experience with regional integration for Latin America. Several indicators of institutional and economic integration for both the EU and Latin America are presented. We find that Latin America is currently less economically integrated not only than the European Union today, but in some cases even than the EU at the beginning of its regional integration process. A cluster analysis illustrates that the link between institutional and economic integration has worked both ways throughout the whole EU experience. The more institutional integration went beyond the creation of a customs union and moved towards a common market and an economic and monetary union, the deeper economic integration turned out. Increasing economic integration in turn corroborated and sustained the process of institutional integration.

Keywords: Regional integration in Europe and Latin America, intra-regional exchange rate variability

JEL Classification: E42, F15, F33, F41

Suggested Citation

Dorrucci, Ettore and Firpo, Stefano and Fratzscher, Marcel and Mongelli, Francesco Paolo, European Integration: What Lessons for Other Regions? The Case of Latin America (October 2002). Available at SSRN: https://ssrn.com/abstract=358260

Ettore Dorrucci (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 13440 (Phone)
+44 69 1344 6000 (Fax)

Stefano Firpo

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Marcel Fratzscher

DIW Berlin ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Francesco Paolo Mongelli

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Goethe University Frankfurt ( email )

Gr├╝neburgplatz 1
Frankfurt am Main, 60323
Germany

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