Symmetry of External Shock responses within the Andean Community of Nations: A SVAR Approach

Abstract: This article studies the symmetry in reactions of the Andean Community of Nations (CAN) economies to external shocks in order to analyze the group's evolution towards economic integration. The undertaking of a Monetary Union project in South America enhances the usefulness of evaluating shocks within this region according to the Optimal Currency Area Theory. A Structural VAR model with non-recursive contemporaneous restrictions is built for each economy and a correlation analysis is performed. The results evidence that the CAN has evolved positively towards structural convergence.

Keywords: Latin American countries; Monetary Union; OCA Theory; Structural VAR; Pays Latino-Américains; Union Monétaire; Théorie des ZMO; Modèle VAR Structurel (search for similar items in EconPapers)
Date: 2012-01-09
New Economics Papers: this item is included in nep-mon
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00657939v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-00657939v1/document (application/pdf)

Related works:
Working Paper: Symmetry of External Shock responses within the Andean Community of Nations: A SVAR Approach (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-00657939

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().