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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.

Suggested Citation

  • Gould, David & Loening, Josef L., 2008. "Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade," MPRA Paper 25896, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25896
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    File URL: https://mpra.ub.uni-muenchen.de/25896/1/MPRA_paper_25896.pdf
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    References listed on IDEAS

    as
    1. Norman Loayza & Pablo Fajnzylber & César Calderón, 2005. "Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts," World Bank Publications - Books, The World Bank Group, number 7315.
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    3. 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, December.
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    5. Montobbio, Fabio & Rampa, Francesco, 2005. "The impact of technology and structural change on export performance in nine developing countries," World Development, Elsevier, vol. 33(4), pages 527-547, April.
    6. World Bank, 2007. "Economic Performance in Latin America and the Caribbean : A Microeconomic Perspective," World Bank Publications - Reports 7857, The World Bank Group.
    7. Norbert Fiess, 2007. "Business Cycle Synchronization and Regional Integration: A Case Study for Central America," The World Bank Economic Review, World Bank, vol. 21(1), pages 49-72.
    8. Kose, M. Ayhan & Rebucci, Alessandro, 2005. "How might CAFTA change macroeconomic fluctuations in Central America?: Lessons from NAFTA," Journal of Asian Economics, Elsevier, vol. 16(1), pages 77-104, February.
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    Cited by:

    1. Estrades, Carmen & Traore, Fousseini & Djiofack Zebaze, Calvin & Cardozo, Adriana, 2015. "DR-CAFTA Agreement and liberalization of trade in services: Evidence from Costa Rica," Conference papers 332581, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    More about this item

    Keywords

    Macroeconomic performance; investment climate; Guatemala; El Salvador; Nicaragua; Hounduras; Costa Rica; Panama;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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