Comparing the Speed of Convergence in American Integration Areas

• Yvonne Sperlich ^[1]
  1. [1] University Geneva, Switzerland
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 13, Nº. 1, 2013, págs. 77-88
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • conomic growth theory predicts more success for North-South than for South-South agreements. We compare the speed of convergence of the North-South area NAFTAwith that of the South-Southarea SICA and the one of the MERCOSUR. We applyGSL fixed effects and a random effects regressionwith the Mundlak device, respectively, bothwith an AR(1) errors. The results indicate that Southern agreement areas clearly converge faster, whereas the within-convergence is faster for NAFTA. But when looking at the confidence intervals, it is shown that the absolute information value of the area-specific speed of convergence is rather limited1.