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Opened regionalism and new integration, what model does generate more commercial integration in South America?

Abstract:

Customs unions are created not only to generate trade but also because of their spin-off effect, that is to say, their ability to lead to more integration processes in other areas that also contribute to development. In South America, five relatively relevant customs unions have been created in terms of trade creation that have not served as a basis for higher levels of integration. Its limited success is related to the asymmetries between the countries that form the groups. This research examines whether customs unions have increased the convergence between economic, social and political indicators, which would justify more political proposals that would actively contribute to union as a group. The application of multidimensional statistical analysis using the hierarchical clustering method with socioeconomic and political variables shows that in the areas considered, there are no groups among the countries that form the customs unions in South America.