Intra-Regional vs. Extra-Regional Trade Liberalization in Central America
Adolfo CristÃ³bal Campoamor,
Manuel Alejandro Cardenete (),
Pedro Caldentey Del Pozo and
Authors registered in the RePEc Author Service: Adolfo Cristobal-Campoamor ()
Emerging Markets Finance and Trade, 2019, vol. 55, issue 8, 1880-1892
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-Ã -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.
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:55:y:2019:i:8:p:1880-1892
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