Mercosul: Its Successes and Failures During Its First Two Decades

In this article, we consider the formation of the Common Market of the Southern Cone (Mercosur) as the outcome of an integration process where its two largest member countries (Brazil and Argentina) pursue industrialization objectives. The article considers the effects of Mercosur in terms of the promotion of economic efficiency and in terms of the promotion of new inflows of foreign direct investment. The article highlights that economic asymmetries between the two largest member countries have been a major obstacle in fostering economic integration in the Southern Cone region.