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dc.titleWeathering the Storm: Policy Options for Central America and the Dominican Republic in an Uncertain Environment
dc.contributor.authorMaldonado, Leonardo
dc.contributor.authorManzano, Osmel
dc.contributor.authorLagarda, Guillermo
dc.contributor.authorQuijada, José Alejandro
dc.contributor.editorMaldonado, Leonardo
dc.contributor.editorManzano, Osmel
dc.contributor.orgunitCountry Department Central America, Mexico, Panama and the Dominican Republic
dc.coveragePanama
dc.coverageNicaragua
dc.coverageHonduras
dc.coverageGuatemala
dc.coverageEl Salvador
dc.coverageDominican Republic
dc.coverageCosta Rica
dc.coverageBelize
dc.coverageCentral America
dc.coverageThe Caribbean
dc.date.available2016-03-07T00:00:00
dc.date.issue2016-02-01T00:00:00
dc.description.abstractCentral America and the Dominican Republic are enjoying a favorable external environment. The U.S. economic recovery, the main trade partner of the region, and the marked fall in oil prices has made it possible to keep up flows of remittances and investment, improve the terms of trade, and to contribute to the strengthening of the external position of the region and its economic growth. However, the relative quality of the regional export basket has receded and few advances have been made in its modernization, which has limited the gains. In this environment, risks remain. Economic deceleration in China or upward adjustment of the U.S. interest rate could negatively impact the balance of payments of the countries. Meanwhile, in the framework of the Free Trade Agreement between the Dominican Republic, Central America and the United States, some agricultural products protected until 2015 will begin to enter markets free of tariffs, which could unveil the fragility of regional competitiveness. The above urges both to prioritize structural reforms to exploit trade complementarities and to coordinate policies with the private sector. The promotion scheme for local industry and direct investment should be reviewed, avoiding the use of tax breaks to compensate for competitive weaknesses. It is pertinent to develop the non-traditional export basket with the aim of drawing more benefit from U.S. growth, diversifying trade risk and generating local horizontal spillovers. Facing threats of less favorable conditions, external scenarios testing the regional performance are explored. Each country should decide between being bystanders of external swings or protagonists of policies which lead to lasting national benefits.
dc.format.extent76
dc.identifier.doihttp://dx.doi.org/10.18235/0012810
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Weathering-the-Storm-Policy-Options-for-Central-America-and-the-Dominican-Republic-in-an-Uncertain-Environment.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Evitando-la-tormenta-Opciones-de-política-para-Centroamérica-y-República-Dominicana-en-un-entorno-incierto.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectTrade Agreement
dc.subjectCommodity Export
dc.subjectAgricultural Productivity
dc.subjectEconomic Development
dc.subjectPublic Debt
dc.subjectSpecial Trade Regime
dc.subjectExchange Rate
dc.subjectBilateral Trade
dc.subjectCompetitiveness
dc.subjectFiscal Deficit
dc.subjectEconomic Policy
dc.subjectComparative Advantage
dc.subject.jelcodeE60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF13 - Trade Policy • International Trade Organizations
dc.subject.jelcodeF10 - Trade: General
dc.subject.jelcodeE66 - General Outlook and Conditions
dc.subject.jelcodeE52 - Monetary Policy
dc.subject.jelcodeO24 - Trade Policy • Factor Movement Policy • Foreign Exchange Policy
dc.subject.jelcodeF41 - Open Economy Macroeconomics
dc.subject.jelcodeF15 - Economic Integration
dc.subject.keywordsexportaciones;external deficit;ventajas comparativas;exchange rate;balanza comercial;basic manufactures;competitiveness;exports;déficit externo;trade balance;CAFTA;productos primarios;commodities;manufacturas básicas;tipo de cambio
dc.typeMonographs
idb.identifier.pubnumberMonographs
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