Welfare analysis of Guatemala in the Central American Common Market: An application of the new international trade theory
Scholz, Sibylle
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https://hdl.handle.net/2142/22727
Description
Title
Welfare analysis of Guatemala in the Central American Common Market: An application of the new international trade theory
Author(s)
Scholz, Sibylle
Issue Date
1991
Doctoral Committee Chair(s)
Schmidt, Stephen C.
Department of Study
Agricultural and Consumer Economics
Discipline
Agricultural and Consumer Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Agricultural
Language
eng
Abstract
Traditional theory of customs union predicts an ultimate failure of integration efforts in semi-industrialized regions (SIC). A review of economic literature published during the last ten years suggests that there are new paradigms in international trade which can be applied specifically to the integration process of semi-industrialized regions. These new perspectives give validity to the continuing efforts of integration among SICs.
The efficacy of a regional economic integration schedule for the promotion of economic development of small semi-industrialized countries such as those forming the Central American Common Market is assessed using the SWOPSIM model developed by the United States Department of Agriculture which embeds the Armington assumption of non-homogeneous goods.
Welfare effects derived from economic integration in Central America are larger than welfare effects accrued to Guatemala from bilateral trade agreements with the United States and Europe for the commodities tested.
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