Promotion of Exports in Central America: An Analysis of Second-Best Policies
28 Pages Posted: 31 Jul 1997
Date Written: 1997
Abstract
Ten years ago, member countries of the Central AmericanCommon Market (CACM) began to turn away from a decades-oldpolicy of "inward development". They encouragednontraditional exports by lowering tariff barriers, unifyingexchange rates, and granting exporters access tointermediate and capital goods at international prices. SomeGovernments have given, in addition, direct export subsidiesin the form of export tax credits. In this paper I reviewthese policies and examine their effect on exports in eachof the five countries. I presented an earlier version to thePrimer Forum de Promocion de Exportaciones en Nicaragua on12 June 1996.
JEL Classification: F13, F14
Suggested Citation: Suggested Citation