Unlocking Central America's Export Potential
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Washington, DC
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The Central America region is a small
market. The region contains around 43 million inhabitants
(0.6 percent of total world population) who generate around
0.25 percent of the world's Gross Domestic Product
(GDP). While the region has successfully embarked on a
regional integration agenda and has strong commercial links
with the US, extra-regional trade-mainly with large
fast-growing emerging economies-remains a challenge. Export
performance is analyzed along three dimensions that,
together, give a fairly comprehensive picture of
competitiveness: 1) the composition, orientation and growth
of the export basket; 2) the degree of export
diversification across products and markets; and 3) the
level of sophistication and quality of their main exports.
This analysis allows exports dynamics at the different
margins of trade (intensive, extensive, and quality) to be
evaluated and individual countries' to be benchmarked
with peers in the Central American region. The results of
this report allow policy makers to identify key areas to
explore in the overall discussion of export competitiveness
in the Central American region. This paper relates to the
literature on challenges and opportunities that trade
liberalization can bring to the Central American region.
Much of the recent literature focuses on the role of the
free trade agreement negotiated by Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, and Nicaragua,
with the US.
Palabras clave
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