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Trade liberalization and economic growth in Central America
- Source: CEPAL Review, Volume 2003, Issue 81, Dec 2003, p. 151 - 168
- Spanish
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- 08 Dec 2003
Abstract
This article examines the long-run relationship between export performance and economic growth in three Central American countries from 1950 to 1999. Therefore, it excludes the recent years of slowdown in the world economy, 2000-2002. The cointegration analysts supports the view that the external sector has been a key determinant of these countries’ long-run rate of economic growth. The article also suggests that the trade liberalization experiences seen since the mid-1980s have had very disparate impacts on these countries’ long-run rates of economic growth. Lastly, the implications of these results for trade liberalization strategies and the possible impact of a United States-Central America Free Trade Agreement are examined.
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