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GTAP Resources: Resource Display

GTAP Resource #1775

"Economic Perspectives for Central America after CAFTA: A GTAP-based Analysis"
by Francois, Joseph, Luis Rivera and Hugo Rojas-Romagosa


Abstract
Using a GTAP CGE application we assess the main economic results of CAFTA for Central America (CA). Currently CA enjoys preferential access to the US market through the CBI and CAFTA will consolidate and increase these concessions. Meanwhile, the agreement requires widespread opening of CA markets to US imports over time.
The implementation of the ATC protocol in 2005 implies increased Chinese competition for the region. Thus, CAFTA will roughly compensate for this new source of competition in the textile and apparel sectors, while creating large opportunities for labor market improvements and FDI inflows to CA. If these opportunities are exploited, the region has much to gain from CAFTA. However, we also find a strong sectoral readjustment of resources from agricultural sectors to maquila-based industries, which can create important adjustment strains.


Resource Details (Export Citation) GTAP Keywords
Category: 2006 Conference Paper
Status: Published
By/In: Presented at the 9th Annual Conference on Global Economic Analysis, Addis Ababa, Ethiopia
Date: 2006
Version: April 2007
Created: Rojas-Romagosa, H. (5/2/2005)
Updated: Rojas-Romagosa, H. (6/26/2007)
Visits: 2,159
- Preferential trading arrangements


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