IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/47202.html
   My bibliography  Save this article

Labour productivity and Central American economic integration: the case of El Salvador

Author

Listed:
  • Cáceres, Luis René

Abstract

This paper seeks to identify the variables that determine labour productivity in El Salvador. The results show that the extreme openness of the Salvadoran economy, combined with the decline in its investment rate since the mid-1990s, have dampened labour productivity growth —as also has happened in other Central American countries. The study also finds that a country’s productivity is positively influenced by the vitality of quality employment and investment in neighbouring countries. This article concludes by advocating the restoration of protection to the subregion’s production sectors, the promotion of quality education, technology and the acquisition of knowledge and skills.

Suggested Citation

  • Cáceres, Luis René, 2021. "Labour productivity and Central American economic integration: the case of El Salvador," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    • Handle: RePEc:ecr:col070:47202
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/47202
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christian Daude & Eduardo Fernandez-Arias, 2010. "On the Role of Productivity and Factor Accumulation in Economic Development in Latin America and the Caribbean," Research Department Publications 4653, Inter-American Development Bank, Research Department.
    2. Hanushek, Eric A. & Woessmann, Ludger, 2007. "The role of education quality for economic growth," Policy Research Working Paper Series 4122, The World Bank.
    3. -, 2021. "CEPAL Review no. 133," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    4. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    5. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    6. Holger Görg & Eric Strobl, 2016. "Spillovers from Foreign Firms through Worker Mobility: An Empirical Investigation," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 13, pages 243-259, World Scientific Publishing Co. Pte. Ltd..
    7. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    8. Harold L. Cole & Lee E. Ohanian & Álvaro José Riascos & James A. Schmitz, 2006. "Latin America in the rearview mirror," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 30(Sep).
    9. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    10. Bengt Petersson & Rodrigo Mariscal & Kotaro Ishi, 2017. "Women Are Key for Future Growth: Evidence from Canada," IMF Working Papers 2017/166, International Monetary Fund.
    11. Carlino, Gerald A. & Voith, Richard, 1992. "Accounting for differences in aggregate state productivity," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 597-617, November.
    12. Ms. Florence Jaumotte & Ksenia Koloskova & Ms. Sweta Chaman Saxena, 2016. "Impact of Migration on Income Levels in Advanced Economies," IMF Spillover Notes 2016/008, International Monetary Fund.
    13. Loayza, Norman V., 1996. "The economics of the informal sector: a simple model and some empirical evidence from Latin America," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 129-162, December.
    14. -, 2018. "La ineficiencia de la desigualdad," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 43442 edited by Cepal.
    15. Patrick A. Imam & Eleonara Granziera & Mr. Norbert Funke, 2008. "Terms of Trade Shocks and Economic Recovery," IMF Working Papers 2008/036, International Monetary Fund.
    16. Christian Daude & Eduardo Fernandez-Arias, 2010. "On the Role of Productivity and Factor Accumulation in Economic Development in Latin America and the Caribbean," Research Department Publications 4653, Inter-American Development Bank, Research Department.
    17. Ludger Vessman & Jerik Hanushek, 2007. "The role of education quality in economic growth (Part I)," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 86-116.
    18. -, 2018. "La ineficiencia de la desigualdad," Documentos de posición del período de sesiones de la Comisión 43442, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    19. Mr. Sebastian Sosa & Ms. Evridiki Tsounta & Miss Marie S Kim, 2013. "Is the Growth Momentum in Latin America Sustainable?," IMF Working Papers 2013/109, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    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. Jorge Thompson Araujo & Markus Brueckner & Mateo Clavijo & Ekaterina Vostroknutova & Konstantin M. Wacker, 2014. "Benchmarking the Determinants of Economic Growth in Latin America and the Caribbean," World Bank Publications - Reports 21318, The World Bank Group.
    2. Riana Razafimandimby Andrianjaka & Eric Rougier, 2017. "What difference does it make? Revue de littérature et analyse empirique des déterminants de la Trappe à Revenu Intermédiaire," Cahiers du GREThA (2007-2019) 2017-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Yasmina Hamouda & Noha Farrag, 2022. "Female education and economic growth: an empirical investigation for Egypt," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 32(1), pages 42-63.
    4. Mendez-Guerra, Carlos, 2014. "On the Development Gap between Latin America and East Asia: Welfare, Efficiency, and Misallocation," MPRA Paper 62588, University Library of Munich, Germany.
    5. Jorge Thompson Araujo & Ekaterina Vostroknutova & Markus Brueckner & Mateo Clavijo & Konstantin M. Wacker, 2016. "Beyond Commodities," World Bank Publications - Books, The World Bank Group, number 25321, April.
    6. Grazzi, Matteo & Pietrobelli, Carlo & Szirmai, Adam, 2015. "The performance of firms in Latin America and the Caribbean: Microeconomic factors and the role of innovation," MERIT Working Papers 2015-041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Arman Canatay & Leonel Prieto & Muhammad Ruhul Amin, 2025. "Navigating the Convergence of Global Competitiveness and Sustainable Development: A Multi-Level Analysis," Sustainability, MDPI, vol. 17(12), pages 1-39, June.
    8. UNESCO Publishing, 2015. "The Economic Cost of Out-of-School Children in Southeast Asia," Working Papers id:7651, eSocialSciences.
    9. Abdel-Rahman, Alaa & Fuller, David, 2014. "Education and employment in Egypt: the policies, discrepancies and possible solutions," MPRA Paper 67571, University Library of Munich, Germany.
    10. Wenni Lei & Yuwei Luo, 2022. "Institutions Rule in Export Diversity," Sustainability, MDPI, vol. 14(18), pages 1-14, September.
    11. Vegas, E & Ganimian, A. J., 2013. "Theory and Evidence on Teacher Policies in Developed and Developing Countries," Working Paper 104291, Harvard University OpenScholar.
    12. World Bank, 2013. "Macedonia Teachers : SABER Country Report 2013," World Bank Publications - Reports 20152, The World Bank Group.
    13. Nguenda Anya, Saturnin Bertrand & Nzepang, Fabrice, 2022. "The role of the separation of democratic powers on structural transformation in Sub-Saharan Africa," Economic Systems, Elsevier, vol. 46(4).
    14. Fadi Fawaz & Anis Mnif & Ani Popiashvili, 2021. "Impact of governance on economic growth in developing countries: a case of HIDC vs. LIDC," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 44-58, June.
    15. -, 2022. "Innovation for development: The key to a transformative recovery in Latin America and the Caribbean," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 47795 edited by Eclac.
    16. Brezis Elise S., 2019. "Should individuals migrate before acquiring education or after? A new model of Brain Waste vs. Brain Drain," The B.E. Journal of Macroeconomics, De Gruyter, vol. 19(2), pages 1-11, June.
    17. Carolina Zayas Márquez & Santos Lopez Leyva & Patricia Moctezuma Hernández, 2016. "Influencia de los rankings universitarios sobre la calidad de las universidades de Argentina, Brasil, Chile y México," Investigaciones de Economía de la Educación volume 11, in: José Manuel Cordero Ferrera & Rosa Simancas Rodríguez (ed.), Investigaciones de Economía de la Educación 11, edition 1, volume 11, chapter 25, pages 467-482, Asociación de Economía de la Educación.
    18. Yue, Jiahua & Zhou, Shangsi, 2018. "Democracy’s comparative advantage: Evidence from aggregated trade data, 1962–2010," World Development, Elsevier, vol. 111(C), pages 27-40.
    19. Simeon D. Alder, 2016. "In the Wrong Hands: Complementarities, Resource Allocation, and TFP," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(1), pages 199-241, January.
    20. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.

    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:col070:47202. 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.