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According to the traditional theory of international trade, a gradual opening oftrade teamed with migration would make initially asymmetric regions moresymmetric. In stark contrast, the new economic geography models show thatfactor mobility and opening may eventually exaggerates initial differences acrossregions. The mere possibility that uneven development may arise as a result oflarger integration renders interesting analyzing the evolution of incomedisparities in Mercosur after more than a decade of economic integration. This isthe main purpose of this paper. The study indicates that income disparities acrossMercosur countries and regions have indeed increased during the 1990s. Apreliminary analysis regarding the impact of the creation of Mercosur, however,shows that the integration process might not be at the origin of this trend.JEL classification: F43, O40, R12