Central American Economic Integration - The Impact of a Customs Union with Guatemala on El Salvadorâ€™s Economy
This 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.
|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|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
- Anne O. Krueger, 1995.
"Free Trade Agreements versus Customs Unions,"
NBER Working Papers
5084, National Bureau of Economic Research, Inc.
- Olivier Cadot & Jaime de Melo & Antoni Estevadeordal & Akiko Suwa-Eisenmann & Bolormaa Tumurchudur, 2002. "Assessing the effect of NAFTA's rules of origin," Research Unit Working Papers 0306, Laboratoire d'Economie Appliquee, INRA.
- Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008.
"Import Demand Elasticities and Trade Distortions,"
The Review of Economics and Statistics,
MIT Press, vol. 90(4), pages 666-682, November.
- Hiau Looi Kee & Nicita, Alessandro & Olarreaga, Marcelo, 2004. "Import demand elasticities and trade distortions," Policy Research Working Paper Series 3452, The World Bank.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2004. "Import Demand Elasticities and Trade Distortions," CEPR Discussion Papers 4669, C.E.P.R. Discussion Papers.
- Innwon Park & Soonchan Park, 2009.
"Free Trade Agreements versus Customs Unions: An Examination of East Asia,"
Asian Economic Papers,
MIT Press, vol. 8(2), pages 119-139, June.
- Park, Innwon & Park, Soonchan, 2008. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," MPRA Paper 11301, University Library of Munich, Germany.
- Verwaal, Ernst & Donkers, Bas, 2003.
"Customs-Related Transaction Costs, Firm Size and International Trade Intensity,"
Small Business Economics,
Springer, vol. 21(3), pages 257-71, November.
- Verwaal, E. & Donkers, A.C.D., 2001. "Customs-Related Transaction Costs, Firm Size and International Trade Intensity," ERIM Report Series Research in Management ERS-2001-13-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Moran, Cristian & Serra, Pablo, 1993. "Trade reform under regional integration : Policy simulations using a CGE model for Guatemala," Journal of Development Economics, Elsevier, vol. 40(1), pages 103-132, February.
- Peter Walkenhorst & Tadashi Yasui, 2004. "Quantitative Assessment of the Benefits of Trade Facilitation," International Trade 0401008, EconWPA.
- Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:mtf:wpaper:1208. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Dr. Sebastian Dullien)
If references are entirely missing, you can add them using this form.