Human Capital Formation and the Linkage between Trade and Poverty: The Cases of Costa Rica and Nicaragua

Luis Rivera and Hugo Rojas-Romagosa

No 331887, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We combine di§erent analytical instruments to assess the impact of human capital and trade policies on macroeconomic aggregates and poverty, and how both sets of policies complement each other in Costa Rica and Nicaragua. We use a top-down approach ñi.e. a dynamic CGE model and microsimulationsñ to assess the e§ects of two FTAs: DR-CAFTA and EU-CAAA on production and poverty. Moreover, we use a human capital satellite model to evaluate the impact of human capital formation. Combining the satellite model with the CGE model and the microsimulations, we construct a rich analytical framework to assess the direct e§ect of each set of policies on poverty and how these policies complement each other. We Önd that human capital policies have a signiÖcant and permanent e§ect on growth and this is associated with poverty reductions. On the other hand, the static e¢ ciency changes associated with trade liberalization have positive but small growth and poverty e§ects.

Keywords: International Relations/Trade; Food Security and Poverty (search for similar items in EconPapers)
Pages: 86
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/331887/files/4659.pdf (application/pdf)

Related works:
Working Paper: Human capital formation and the linkage between trade and poverty: the cases of Costa Rica and Nicaragua (2011)
Working Paper: Human capital formation and the linkage between trade and poverty: the cases of Costa Rica and Nicaragua (2010)
Working Paper: Human Capital Formation and the Linkage between Trade and Poverty: The Cases of Costa Rica and Nicaragua (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331887

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().