Trade liberalization and economic growth in Central America
2003-12
LC/G.2216-P
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 analysis 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.
Includes bibliography
Comisión Económica para América Latina y el Caribe (CEPAL) - Biblioteca Hernán Santa Cruz
Héctor Aracena
Biblioteca CEPAL, Edificio Naciones Unidas, Av. Dag Hammarskjold 3477, Santiago, Chile
(+56-2) 2210-2337