The Countries of the Central American Common Market and the Challenges of a Hemispheric Free Trade Agreement: The Extent of Macroeconomic Preparedness
Integration & Trade Journal, No. 1, pp. 37-59, January - April 1997
23 Pages Posted: 11 Mar 2007
Abstract
This article measures from a macroeconomic perspective, the degree of readiness of Central American countries to open their economies and join hemispheric integration schemes such as the Free Trade Area of the Americas (FTAA). A number of indicators are build on the fiscal, monetary, financial and trade sectors, in order to measure the degree of preparedness along four criteria applicable to the various phases of negotiation, integration and consolidation of a free trade area: eligibility to negotiate, tenor of economic policies, suitability of structural fundamentals and exposure to risks.
Keywords: Latin America, Economic Integration, Macroeconomic Readiness, Free Trade Area of the Americas
JEL Classification: F15, O23, 54
Suggested Citation: Suggested Citation