Regional integration initiatives have long been part of the world economic landscape. In Latin Am... more Regional integration initiatives have long been part of the world economic landscape. In Latin America, integration flourished in the early post-war era but then lost momentum until the 1990s, when there was a new wave of initiatives ranging from free trade areas to customs unions. This Report examines such dimensions of integration as market access, institutional arrangements, regional infrastructure, financial integration, and macroeconomic and exchange rate coordination. It also looks at the effects on productivity, foreign direct investment and inequality. Other topics include the configuration of sub-regional integration initiatives, the Doha multilateral trade agenda, and North-South initiatives such as the Free Trade Area of the Americas and inter-regional agreements with the European Union.
Using data from a large sample of countries, this paper shows that emerging markets do not differ... more Using data from a large sample of countries, this paper shows that emerging markets do not differ from developed countries with regards to the variance of permanent TFP shocks relative to transitory. They do differ, however, in the degree of uncertainty agents face when formulating expectations. Based on these observations, we build an equilibrium business cycle model in which the agents cannot perfectly distinguish between the permanent and transitory components of TFP shocks and learn about those components using the Kalman filter. When the signals have permanent and transitory-but persistent- components, permanent shocks are amplified relative to transitory through the Kalman filter. Due to this amplification, the imperfect information model calibrated to Mexico predicts a higher variability of consumption relative to output and a strongly negative correlation between the trade balance and output, without the predominance of trend shocks. The estimated relative variance of trend ...
Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich a... more Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter
The role of regional integration agreements as a determinant of the location of FDI has become an... more The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a number of highly relevant questions: For instance, what effect will the FTAA have on FDI from the US and Canada to Latin American countries? How will it affect FDI from the rest of the world? What are the implications for a country such as Mexico, whose preferential access to the US may be diluted? Should we expect to see winners and losers, and if so, what determines whether a particular country wins or loses? To address these questions, in this paper we look at the impact of regional integration on FDI, and attempt to derive conclusions regarding the likely impact of the FTAA on countries in Latin America. * Paper prepared for the IDB-Harvard Conference on the FTAA in Punta del Este, Uruguay. ...
respectively. The views expressed in this document are the authors ’ and do not necessarily refle... more respectively. The views expressed in this document are the authors ’ and do not necessarily reflect those of the Inter-American Development Bank. The authors would like to thank Josefina Posadas for her invaluable research assistance, and José Luis Machinea, Andrew Powell, Andrés Rodríguez Clare and conference participants at the 2001 LACEA Regional Integration Network meetings in Punta del Este for helpful comments and suggestions. 1 Regional Integration and the Location of FDI Over the last couple of decades, we have seen an increase in the number and depth of regional integration agreements (RIA) around the world. Indeed, the proliferation of trade agreements is quite widespread. The former European Economic Community has evolved into a single market (EU) and has recently adopted a common currency, while other non-EU European countries have formed free trade areas with the EU or are presently considering accession. Likewise, countries in Southeast Asia agreed to form the ASEAN Fr...
This series of working papers is intended to disseminate the Development Centre’s research findin... more This series of working papers is intended to disseminate the Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language. Comments on this paper would be welcome and should be sent to the OECD
We study the impact of regional integration agreements (RIAs) on the location of (FDI) using pane... more We study the impact of regional integration agreements (RIAs) on the location of (FDI) using panel data on bilateral outward foreign direct investment FDI stocks. Our results suggest that common membership in a RIA increases FDI by around 28 percent. In addition, countries that are more open, and whose factor proportions differ more from those in the source country are likely to benefit more from a RIA. Also, while increased market accessibility contributes to attract more FDI to a region as a whole, only countries that offer an attractive environment for FDI are likely to be winners in this game. JEL Classification: F15, F21
RESUMEN Este capítulo se centra en el análisis del comportamiento de los tipos de cambio reales d... more RESUMEN Este capítulo se centra en el análisis del comportamiento de los tipos de cambio reales de Uruguay respecto a Argentina y Brasil. Se consideran datos mensuales correspondientes al período comprendido entre 1975 y 1999. Durante el último cuarto de ...
Regional integration initiatives have long been part of the world economic landscape. In Latin Am... more Regional integration initiatives have long been part of the world economic landscape. In Latin America, integration flourished in the early post-war era but then lost momentum until the 1990s, when there was a new wave of initiatives ranging from free trade areas to customs unions. This Report examines such dimensions of integration as market access, institutional arrangements, regional infrastructure, financial integration, and macroeconomic and exchange rate coordination. It also looks at the effects on productivity, foreign direct investment and inequality. Other topics include the configuration of sub-regional integration initiatives, the Doha multilateral trade agenda, and North-South initiatives such as the Free Trade Area of the Americas and inter-regional agreements with the European Union.
Using data from a large sample of countries, this paper shows that emerging markets do not differ... more Using data from a large sample of countries, this paper shows that emerging markets do not differ from developed countries with regards to the variance of permanent TFP shocks relative to transitory. They do differ, however, in the degree of uncertainty agents face when formulating expectations. Based on these observations, we build an equilibrium business cycle model in which the agents cannot perfectly distinguish between the permanent and transitory components of TFP shocks and learn about those components using the Kalman filter. When the signals have permanent and transitory-but persistent- components, permanent shocks are amplified relative to transitory through the Kalman filter. Due to this amplification, the imperfect information model calibrated to Mexico predicts a higher variability of consumption relative to output and a strongly negative correlation between the trade balance and output, without the predominance of trend shocks. The estimated relative variance of trend ...
Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich a... more Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter
The role of regional integration agreements as a determinant of the location of FDI has become an... more The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a number of highly relevant questions: For instance, what effect will the FTAA have on FDI from the US and Canada to Latin American countries? How will it affect FDI from the rest of the world? What are the implications for a country such as Mexico, whose preferential access to the US may be diluted? Should we expect to see winners and losers, and if so, what determines whether a particular country wins or loses? To address these questions, in this paper we look at the impact of regional integration on FDI, and attempt to derive conclusions regarding the likely impact of the FTAA on countries in Latin America. * Paper prepared for the IDB-Harvard Conference on the FTAA in Punta del Este, Uruguay. ...
respectively. The views expressed in this document are the authors ’ and do not necessarily refle... more respectively. The views expressed in this document are the authors ’ and do not necessarily reflect those of the Inter-American Development Bank. The authors would like to thank Josefina Posadas for her invaluable research assistance, and José Luis Machinea, Andrew Powell, Andrés Rodríguez Clare and conference participants at the 2001 LACEA Regional Integration Network meetings in Punta del Este for helpful comments and suggestions. 1 Regional Integration and the Location of FDI Over the last couple of decades, we have seen an increase in the number and depth of regional integration agreements (RIA) around the world. Indeed, the proliferation of trade agreements is quite widespread. The former European Economic Community has evolved into a single market (EU) and has recently adopted a common currency, while other non-EU European countries have formed free trade areas with the EU or are presently considering accession. Likewise, countries in Southeast Asia agreed to form the ASEAN Fr...
This series of working papers is intended to disseminate the Development Centre’s research findin... more This series of working papers is intended to disseminate the Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language. Comments on this paper would be welcome and should be sent to the OECD
We study the impact of regional integration agreements (RIAs) on the location of (FDI) using pane... more We study the impact of regional integration agreements (RIAs) on the location of (FDI) using panel data on bilateral outward foreign direct investment FDI stocks. Our results suggest that common membership in a RIA increases FDI by around 28 percent. In addition, countries that are more open, and whose factor proportions differ more from those in the source country are likely to benefit more from a RIA. Also, while increased market accessibility contributes to attract more FDI to a region as a whole, only countries that offer an attractive environment for FDI are likely to be winners in this game. JEL Classification: F15, F21
RESUMEN Este capítulo se centra en el análisis del comportamiento de los tipos de cambio reales d... more RESUMEN Este capítulo se centra en el análisis del comportamiento de los tipos de cambio reales de Uruguay respecto a Argentina y Brasil. Se consideran datos mensuales correspondientes al período comprendido entre 1975 y 1999. Durante el último cuarto de ...
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