2002 Fiscal Year Final Research Report Summary
Regional Economic Integration as a Tool of Development Strategy
| Project/Area Number |
11630008
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済理論
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| Research Institution | Shiga University |
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Principal Investigator |
OGURA Akihiro Shiga University, Faculty of Economics, Associate Professor, 経済学部, 助教授 (20204159)
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| Project Period (FY) |
1999 – 2002
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| Keywords | Regional Economic Integration / Market Oriented Development Starategy / NAFTA / MERCOSUR / Dynamic Comparative Advantage / Latin America |
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| Research Abstract |
This research has developed on the possible contributions of the regional economic integration (REI) on development policies in globalizing world economy. Utilizing economic development and integration theories, the Cases of Latin America Region were examined.
REI and neo-liberalist development policies were pursued simultaneously in the Region. Because of this synchronism, we also considered the limits of neo-liberalist strategy of development.
Even though another effort would be necessary to get more solid econometrical result, we got following conclusions. Firstly, REI creates market distortions and try to utilize it for economic development. The success would be brought if the dynamic effects on development exceeded the static losses from the distortions.
Secondly, NAFTA and MEROCOSUR applied different strategies to minimize the static losses of distortions created by integration. In the case of NAFTA, integration with the most advanced county would minimize the losses and Mexico succ
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eeded to elevate her comparative advantage structure. In the case of MERCOSUR, member countries try to overcome the static losses by getting dynamic merit of scale economy which would be realized through horizontal division of labor among them.
Thirdly, NAFTA has shown better performance than MERCOSUR until now. NAFTA, however has worked with more liberalistic nature among member countries, so that it would tend to lead domestic political-social friction in the countries. In addition, deeper dependency to advanced economy would not cause severe problem in good faze of the economic cycle, however its sustainability would be tested in the downturn of the cycle.
Lastly, Distribution of fruits and burdens among countries would be one of the most important issues in the case of MERCOSUR. Especially, countries which consists MERCOSUR are still fecing unstable economic situation. It would be difficult to bear the static losses of integration, because sometime the policies to progress integration process would lead macroeconomic instability. The stable exchange rate among member countries would be crucial to accomplish steady integration process and to utilize dynamic effects of REI. Less
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