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Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade

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  • Gould, David
  • Loening, Josef L.

Abstract

Central America's economic performance in recent years has benefited from improved macroeconomic management, a favorable external environment, as well as rising investor confidence since the region has pursued greater access to global markets, particularly with the signing of DR-CAFTA in 2004. Nonetheless, while important reforms have been made, at the sectoral level, much remains to be done. The context of a less favorable global environment underlines the need to improve competiveness and enhance productivity. An improved investment climate would contribute to both and help to unleash the full potential of DR-CAFTA.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25896.

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Date of creation: 15 Sep 2008
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Handle: RePEc:pra:mprapa:25896

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Keywords: Macroeconomic performance; investment climate; Guatemala; El Salvador; Nicaragua; Hounduras; Costa Rica; Panama;

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  1. Kose, M. Ayhan & Rebucci, Alessandro, 2005. "How might CAFTA change macroeconomic fluctuations in Central America?: Lessons from NAFTA," Journal of Asian Economics, Elsevier, Elsevier, vol. 16(1), pages 77-104, February.
  2. World Bank, 2007. "Economic Performance in Latin America and the Caribbean : A Microeconomic Perspective," World Bank Other Operational Studies 7857, The World Bank.
  3. Norman Loayza & Pablo Fajnzylber & César Calderón, 2005. "Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts," World Bank Publications, The World Bank, number 7315, August.
  4. Montobbio Fabio & Rampa Francesco, 2002. "The impact of technology and structural change on export performance on nine developing coutries," Economics and Quantitative Methods, Department of Economics, University of Insubria qf0219, Department of Economics, University of Insubria.
  5. Kazuhiro YUKI, 2007. "Determinants Of Sectoral Composition In A Small Open Economy: Theoretical And Quantitative Investigations Of The Philippines," The Developing Economies, Institute of Developing Economies, vol. 45(4), pages 391-436.
  6. Alfred Schipke & Dominique Desruelle, 2007. "Economic Growth and Integration in Central America," IMF Occasional Papers 257, International Monetary Fund.
  7. Fiess, Norbert, 2005. "Business cycle synchronization and regional integration: a case study for Central America," Policy Research Working Paper Series 3584, The World Bank.
  8. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2005. "Investment Climate and Firm Performance in Developing Economies," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 1-31, October.
  9. Shaun K. Roache, 2008. "Central America's Regional Trends and U.S. Cycles," IMF Working Papers 08/50, International Monetary Fund.
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