Productive Efficiency under Economic Integration in the Mercosur and Sica blocs
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February 8, 2025Productive Efficiency under Economic Integration in the Mercosur and Sica blocs
ABSTRACT: This paper determined the productive efficiency of Mercosur and Sica economic blocs over the period 2009 – 2022 and compared their productive strategies. Results showed that economic efficiency [EE] was greater and its variation lower in Mercosur [M] bloc compared with Sica [S] bloc. Similar patterns were observed regarding Pure Technical Efficiency [PTE] and Allocative Efficiency [AE]. Overall, EE between the two blocs tended to converge, with that of Mercosur remaining flat over the years.
Regression results showed that in Mercosur countries only credits in the human capital/private sector group and the agriculture sector in the productive sector had a stronger positive impact on economic efficiency than in Sica countries. All other variables, markets size, gross fixed capital formation and access to electricity, in the infrastructure group had a stronger positive impact and tax in the monetary/fiscal policy group, and tax on trade and exchange rate in the trade policy group and the service sector in the productive sector group had a stronger negative impact on EE in Sica countries compared with Mercosur countries.
Keywords: Caribbean, Latin America, pure technical efficiency, allocative efficiency, economic efficiency.