Central American Economic Integration - The Impact of a Customs Union with Guatemala on El Salvadorâ€™s Economy
AbstractThis study analyzes the expected impact of the implementation of a Customs Union between Guatemala and El Salvador on the latterâ€™s economy. In order to do so, the main implications of moving from a Free Trade Area to a Customs Union are examined: CET establishment (with special attention paid to those sectors that would be negatively affected by a tariff reduction), RoO elimination and the abolition of customs controls. The analysis anticipates that efficiency gains from a number of factors (including reduction of goodsâ€™ prices, RoO administrative and compliance expenses and custom-related transaction costs) surpass the negative impact on domestic producers that are affected by a tariff cutback.
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Bibliographic InfoPaper provided by Hochschule fuer Technik und Wirtschaft, Berlin in its series Competence Centre on Money, Trade, Finance and Development with number 1208.
Length: 55 pages
Date of creation: Jul 2012
Date of revision:
Publication status: Published in Berlin Working Papers on Money, Finance, Trade and Development, July 2012
Contact details of provider:
Web page: http://finance-and-trade.htw-berlin.de
working paper; daadpartnership; finance-and-trade;
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