Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade

Gould, David and Loening, Josef L. (2008): Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade. Published in: Economic Sector Work, Finance and Private Sector Unit, Poverty Reduction and Economic Management Unit, Latin America and the Caribbean Region , Vol. Report, (15 September 2008): pp. 1-15.

Abstract

Central America's economic performance in recent years has benefited from improved macroeconomic management, a favorable external environment, as well as rising investor confidence since the region has pursued greater access to global markets, particularly with the signing of DR-CAFTA in 2004. Nonetheless, while important reforms have been made, at the sectoral level, much remains to be done. The context of a less favorable global environment underlines the need to improve competiveness and enhance productivity. An improved investment climate would contribute to both and help to unleash the full potential of DR-CAFTA.

• Item Type: MPRA Paper
• Language: English
• Keywords: Macroeconomic performance; investment climate; Guatemala; El Salvador; Nicaragua; Hounduras; Costa Rica; Panama
• Subjects: F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E66 - General Outlook and Conditions; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean

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