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The impact of the Panama Canal transfer on the Panamanian economy

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  • Fuentes Cordoba, Gabriel

Abstract

Panama received full administration of the Panama Canal in December 31st of 1999. Using the synthetic control method, I quantify the effect of this transfer on per capita GDP in Panama. The findings suggest that the transfer had a small positive effect in the short-run and a large positive effect in the mid- and long-run. However, the long-run effect may be overestimated due to the expansion of the Panama Canal.

Suggested Citation

  • Fuentes Cordoba, Gabriel, 2022. "The impact of the Panama Canal transfer on the Panamanian economy," Economics Letters, Elsevier, vol. 211(C).
    • Handle: RePEc:eee:ecolet:v:211:y:2022:i:c:s0165176521004559
    DOI: 10.1016/j.econlet.2021.110208
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    References listed on IDEAS

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    More about this item

    Keywords

    Panama; Development; Synthetic control;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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