A Comparative Approach to Integration and Trade Openness in the Economic Growth of the European Union and Latin America

Authors

  • Alberto Villagra-Piña Universidad Nacional Autónoma de México, Posgrado de la Facultad de Economía
  • Miguel Ángel Mendoza-González Universidad Nacional Autónoma de México, Posgrado de la Facultad de Economía
  • Luis Quintana-Romero Universidad Nacional Autónoma de México, FES Acatlán

DOI:

https://doi.org/10.21919/remef.v13i1.258

Keywords:

Integración económica, Apertura comercial, Crecimiento económico, Restricción de Balanza de Pagos, Países de Unión Europea y América Latina.

Abstract

The aim of this research is to prove whether Economic Integration and Trade Openness in countries of the European Union (EU) and Latin America (LA) helped alleviate previous Balance of Payments imbalances. The main contribution of the work consists on the comparative analysis between the EU and LA in two different periods of time (according to their economic integration) using the Westerlund panel cointegration technique (2007 and 2008) to prove the validity of Thirlwalls Law. The results show that the relative prices are not relevant in periods of Economic Integration and Trade Openness, consequently it was more appropriate to work with Harrods Dynamic Trade Multiplier. It is important to mention that, although the counterfactual approach is applied to different historicalmoments in Europe and Latin America, the results showed that the Economic Integration helped alleviate the Balance of Payments imbalances in European countries and Trade Openness caused a greater growth compatible with the Balance of Payments equilibrium for most Latin American countries.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Published

2017-12-22

How to Cite

Villagra-Piña, A., Mendoza-González, M. Ángel, & Quintana-Romero, L. (2017). A Comparative Approach to Integration and Trade Openness in the Economic Growth of the European Union and Latin America. The Mexican Journal of Economics and Finance, 13(1). https://doi.org/10.21919/remef.v13i1.258

Issue

Section

Research and Review Articles

PlumX detalle de metricas