This paper presents estimates of potential output for all Central American economies. Our findings are that potential output growth has declined in recent years in most economies of Central America. Lower capital accumulation and TFP growth are accounting for most of this decline. Apart from...

This paper examines the role of disaster shock in a one-sector, representative agent Dynamic Stochastic General Equilibrium (DSGE) model. Firstly, we estimate a Panel Vector Autoregresive (VAR) model for output, investment, trade balance, consumption and country spread to capture the economic...

The clothing assembly industry has long been an important economic sector in a number of countries of the Caribbean Basin. This paper will begin with a summary of the growth and development of the Central American and Caribbean Basin garment export industry in the face of evolving trade...

The objective of this paper is to understand the mechanisms by which development projects facilitate market linkage of smallholder farmers based on panel data from Nicaragua. We find that activities related to entrepreneurial practices have positive and statistically significant effect on...

While smallholder market participation is seen as a catalyst for poverty alleviation, farmers in rural areas face a number of challenges in doing so. One of the most important factors is considered transaction costs related to transportation. Our study quantifies the benefits associated with...

This paper offers insights into dynamics of urban violence in two Central American countries that have evolved very differently historically. Costa Rica boasts the lowest overall levels of poverty and inequality of any country on the Isthmus, and has benefited from decades of stable and...