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dc.titleProductivity Spillovers through Trade Integration in Central America
dc.contributor.authorLópez, Arnoldo
dc.contributor.authorSerrano, Jeffrey
dc.contributor.orgunitCountry Department Central America, Haiti, Mexico, Panama and the Dominican Republic
dc.coverageBelize
dc.coverageCosta Rica
dc.coverageDominican Republic
dc.coverageEl Salvador
dc.coverageGuatemala
dc.coverageHonduras
dc.coverageNicaragua
dc.coveragePanama
dc.coverageCentral America
dc.date.available2025-02-03T00:02:00
dc.date.issue2025-02-01T00:02:00
dc.description.abstractCentral America is a highly trade-integrated region. However, there has been little analysis of the effects such integration has had on macroeconomic aggregates. This study explores how spillovers from country-specific productivity shocks would spread across the countries that comprise the region. To do so, it employs a computable general equilibrium model calibrated to replicate the bilateral trade relationships within the region. As expected, the results show that countries that are more integrated within it would benefit more from idiosyncratic positive productivity shocks. In addition, the analysis enables the identification of spillovers across countries through the trade channel and estimates the beneficial effect of economic integration on economic growth compared to that of autarky.
dc.format.extent46
dc.identifier.doihttp://dx.doi.org/10.18235/0013391
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Productivity-Spillovers-through-Trade-Integration-in-Central-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectIntegration and Trade
dc.subjectEconomic Development
dc.subjectProductivity Shock
dc.subjectEconomic Integration
dc.subjectDebtor Finance
dc.subjectGross Domestic Product
dc.subject.jelcodeF15 - Economic Integration
dc.subject.jelcodeF43 - Economic Growth of Open Economies
dc.subject.jelcodeC61 - Optimization Techniques • Programming Models • Dynamic Analysis
dc.subject.keywordsgravity model;general equilibrium;Central America;spillovers;Trade
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-03085
idb.operationRG-P1846
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