IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/10992.html

Trade liberalization and economic growth in Central America

Author

Listed:
  • Moreno Brid, Juan Carlos
  • Pérez Caldentey, Esteban

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 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.

Suggested Citation

  • Moreno Brid, Juan Carlos & Pérez Caldentey, Esteban, 2003. "Trade liberalization and economic growth in Central America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:10992
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/10992
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
    2. Juan Carlos Moreno-Brid, 1998. "On Capital Flows and The Balance-of-Payments-Constrained Growth Model," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(2), pages 283-298, December.
    3. Hubert Hieke, 1997. "Balance-Of-Payments–Constrained Growth: A Reconsideration of the Evidence for the U.S. Economy," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 19(3), pages 313-325, March.
    4. Juan Carlos Moreno-Brid & Esteban Pérez, 1999. "Balance-of-Payments-Constrained Growth in Central America: 1950–96," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(1), pages 131-147, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ali, Anesa & Pérez Caldentey, Esteban, 2007. "The comparative advantage fallacy and a rule for convergence," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Mario Cimoli & Nelson Correa, 2002. "Trade Openess and Technological Gaps in Latin America: a Low Growth Trap," LEM Papers Series 2002/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Moreno Brid, Juan Carlos & Ros, Jaime, 2004. "Mexico's market reforms in historical perspective," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    4. Ferreira, Gustavo F.C., 2009. "From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 47178, Southern Agricultural Economics Association.
    5. Laura Jaramillo & Ms. Cemile Sancak, 2007. "Growth in the Dominican Republic and Haiti: Why has the Grass Been Greener on One Side of Hispaniola?," IMF Working Papers 2007/063, International Monetary Fund.
    6. Beteta, Hugo E. & Moreno Brid, Juan Carlos, 2014. "Structural change and growth in Central America and the Dominican Republic: an overview of two decades, 1990-2011," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37342 edited by Eclac.
    7. Carolina Castaldi & Mario Cimoli & Nelson Correa & Giovanni Dosi, 2004. "Technological Learning, Policy Regimes and Growth in a `Globalized' Economy: General Patterns and the Latin American Experience," LEM Papers Series 2004/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Douglas Alcantara Alencar & Douglas Alcantara Alencar & Eduardo Strachman, 2016. "Foreign Direct Investment And Balance Of Payments In Latin America (1990-2011)," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 081, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    9. Douglas Alcantara Alencar & Eduardo Strachman, 2014. "Investimento Direto Estrangeiro E Balanço De Pagamentos, No Brasil: 1994 E 2008," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 048, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    10. Ferreira, Gustavo F.C. & Harrison, R. Wes, 2012. "From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 517-531, November.
    11. Maurizio Bussolo & Rafael E De Hoyos & Denis Medvedev, 2010. "Economic growth and income distribution: linking macro-economic models with household survey data at the global level," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 92-103.
    12. Perez Caldentey, Esteban & Ali, Anesa, 2010. "Growth and convergence/divergence in productivity under balance-of-payments constraint," MPRA Paper 20056, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Alberto Vázquez Muñoz, 2024. "Thirlwall's Law, Investment, Productive Chains and Domestic Markets," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(3), pages 1-22, Julio - S.
    2. Penelope Pacheco-Lopez & A.P. Thirlwall, 2005. "Trade Liberalisation, the Balance of Payments and Growth in Latin America," Studies in Economics 0505, School of Economics, University of Kent.
    3. Ahmad Jafari Samimi & Ramezan Hosseinzadeh, 2011. "Foreign Trade and Economic Growth: Evidence of Thirlwall’s Law in Iran," Journal of Social and Development Sciences, AMH International, vol. 2(2), pages 81-88.
    4. Anthony Philip Thirlwall, 2012. "Balance of Payments Constrained Growth Models: History and Overview," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 1, pages 11-49, Palgrave Macmillan.
    5. Ricardo Azevedo Araujo & Gilberto Tadeu Lima, 2007. "A structural economic dynamics approach to balance-of-payments-constrained growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(5), pages 755-774, September.
    6. Maja Kadievska-Vojnovic & Danica Unevska, 2007. "Price and Income Elasticities of Export and Import and Economic Growth in the case of the Republic of Macedonia," Working Papers 2007-01, National Bank of the Republic of North Macedonia.
    7. Phillips, Daphne, 2009. "The political economy of HIV," Documentos de Proyectos 3703, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Ali, Amjad, 2022. "Determining Pakistan's Financial Dependency: The Role of Financial Globalization and Corruption," MPRA Paper 116097, University Library of Munich, Germany.
    9. J.-C. Moreno-Brid, 1998. "Balance-of-payments constrained economic growth: the case of Mexico," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 51(207), pages 413-433.
    10. Robert A. Blecker, 2009. "Long-Run Growth in Open Economies: Export-Led Cumulative Causation or a Balance-of-Payments Constraint?," Working Papers 2009-23, American University, Department of Economics.
    11. Elias Soukiazis & Pedro André Cerqueira & Micaela Antunes, 2012. "Growth Rates Constrained by Internal and External Imbalances: A Demand-Orientated Approach," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 5, pages 144-167, Palgrave Macmillan.
    12. Araujo, Ricardo Azevedo, 2013. "Cumulative causation in a structural economic dynamic approach to economic growth and uneven development," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 130-140.
    13. Nelson H. Barbosa-Filho, 2001. "The balance-of-payments constraint:from balanced trade to sustainable debt," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 54(219), pages 381-400.
    14. Joerg Mayer, 2017. "How Could the South Respond to Secular Stagnation in the North?," The World Economy, Wiley Blackwell, vol. 40(2), pages 314-335, February.
    15. Gustavo Britto & João Prates Romero, 2011. "Modelos kaldorianos de crescimento e suas extensões contemporâneas," Textos para Discussão Cedeplar-UFMG 449, Cedeplar, Universidade Federal de Minas Gerais, revised Jul 2013.
    16. Elias Soukiazis & Eva Muchova, 2012. "Slovak economic growth and the consistency of the balance-of-payments constraint approach," GEMF Working Papers 2012-16, GEMF, Faculty of Economics, University of Coimbra.
    17. Arslan Razmi, 2013. "Correctly Analyzing the Balance of Payments Constraint on Growth," UMASS Amherst Economics Working Papers 2013-12, University of Massachusetts Amherst, Department of Economics.
    18. Frederico Gonzaga Jayme Junior, 2001. "External debt sustainability: empirical evidence in Brazil," Textos para Discussão Cedeplar-UFMG td154, Cedeplar, Universidade Federal de Minas Gerais.
    19. Önder Nomaler & Danilo Spinola & Bart Verspagen, 2024. "Demand‐led industrialisation policy in a dual‐sector small open economy," Metroeconomica, Wiley Blackwell, vol. 75(3), pages 339-376, July.
    20. Marcos Tostes Lamonica & Carmem Aparecida Feijo, 2013. "A Kaldorian approach to catch up and structural change in economies with high degree of heterogeneity," PSL Quarterly Review, Economia civile, vol. 66(265), pages 107-135.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:10992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.