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Intra-Regional vs. Extra-Regional Trade Liberalization in Central America

Authors

CRISTOBAL CAMPOAMOR, ADOLFO, CARDENETE FLORES, MANUEL ALEJANDRO, CALDENTEY DEL POZO, PEDRO, NEKHAY, OLEXANDR

External publication

No

Means

Emerg. Mark. Financ. Trade

Scope

Article

Nature

Científica

JCR Quartile

SJR Quartile

JCR Impact

1.214

SJR Impact

0.444

Publication date

21/06/2019

ISI

000462832200013

Scopus Id

2-s2.0-85059043541

Abstract

Although the Central American countries trade very extensively with the USA, the remarkable growth of their intra-regional exports is prone to create more internal added value for the region. Taking this background into account, we use and compare a standard, perfectly competitive and an imperfectly competitive GTAP CGE model based on the GTAP 9 database, to assess different scenarios. Our simulations evaluate the elimination of all existing import taxes and export subsidies in 2011, both at the intra-regional level and vis-a-vis the USA. The results emphasize the preference by most of the Central American countries for the completion of the Customs Union at the expense of a deepening of the DR-CAFTA agreements.

Keywords

applied general equilibrium; Central America; Free Trade Agreements (FTAs); GTAP

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