Export promotion and import substitution in Central American industry

The countries of Central America are often described as open economies because the ratio of trade to gross domestic product (GDP) is high. During the 1980s, the ratio of exports to gross regional product in Central America has averaged 23% and the ratio of imports to gross regional product (29%) is even higher. A large (but declining) portion of this trade consists of the exchange of manufactures among countries of the region. Still, there can be no doubt that the economies are very open by this measure.