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The source of sustainable growth in Costa Rica

Author

Listed:
  • Nabeshima, Kaoru
  • Ito, Tadashi
  • Tanaka, Kiyoyasu
  • Kashcheeva, Mila
  • Bullon, David
  • Sanchez, Natalia

Abstract

Costa Rica has some concerns for the "middle income trap" stemming from her perceived weakening export competitiveness, intensifying competition in attracting FDI inflow; and apparent lack of innovation capabilities. Quantitative analyses on the impact of recent FTAs suggest only large firms benefit from FTAs suggesting the need for improving utilization by smaller firms. Continuing attraction of potential MNCs backed by human capital development is necessary. In pursuing its development goals, Costa Rica should be mindful of its reputation as an environmentally friendly place.

Suggested Citation

  • Nabeshima, Kaoru & Ito, Tadashi & Tanaka, Kiyoyasu & Kashcheeva, Mila & Bullon, David & Sanchez, Natalia, 2015. "The source of sustainable growth in Costa Rica," IDE Discussion Papers 500, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper500
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Costa Rica; International trade; Exports; International economic integration; Economic growth; Foreign investments; Middle income trap; FTA; Innovation;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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