Trade, Industrialization, and Integration in Twentieth-Century Central America

By Irma Tirado de Alonso | Go to book overview

three other countries. In effect, this country is the only one that shows salient and special flows with all the other countries of the region. It should be noted that the salient flow between Honduras and Guatemala was lost in 1981, although the special flow between Honduras and Costa Rica was maintained. In effect, it appears that Honduras has a "propensity" or "preference" to establish "special" ties with Costa Rica, while its links to Guatemala are unstable. 8 + ̰/

It should be underlined, nevertheless, that although there exists a considerable distance between Costa Rica and Guatemala, the important flow between these countries was maintained, which could be explained by their high levels of industrial production. In this way the volume of industrial production could be conceptualized as an impulsive element that attenuated spatial friction. 9 + ̰/

It is through the analysis of salient, special, and important flows that the distinct characteristics of trade within the Central American Common Market (CACM) can be perceived. The wide corridor of salient flows from the north to the south in 1977 and 1978 suggests the existence of solid economic interdependence (see Figures 6.5 and 6.6). Clearly, Costa Rica was solidly integrated with Guatemala and El Salvador, not only through direct linkages, but also indirectly, through its external connections with Nicaragua and thence to Honduras, and then from Honduras to Guatemala. This is to say, Costa Rica, on one side, and Guatemala and El Salvador on the other, benefited from the bridge effect that Honduras and Nicaragua offered to their reciprocal economic stimuli.

In the last years of the analysis there is an appreciable loss of salient flows, and the corridor appears to be obstructed. This has the potential of creating two poles of integration in the region. Because of the absence of a "super-corridor," the countries of the north would not receive fully the incoming stimuli arising from the south (especially Costa Rica), and vice-versa: Costa Rica would not receive growth impulses from the economies of Guatemala and El Salvador. This indicates the necessity of fortifying the Central American integration system, and intrazonal trade in particular, within a global context. Therefore, a regional focus is required to address the area's problems.


NOTES
1.
It has been shown that the Central American trade reflects the behavior of traditional exports of the countries of the region. See Cáceres ( 1979A), pp. 141-53. Also see Siri ( 1979), pp. 289-309.
2.
The analysis of transaction flows was developed by I. R. Savage and K. Deutsch ( 1960, pp. 551-72). See also Goodman ( 1963), pp. 191-208; Toscano ( 1964), pp. 98-119; and S. J. Brams ( 1966), pp. 880-98.

-113-

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Trade, Industrialization, and Integration in Twentieth-Century Central America
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Illustrations vii
  • Preface xi
  • PART I INTRODUCTION 1
  • 1: CENTRAL AMERICA: THE CHALLENGES OF TRADE, INDUSTRIALIZATION, and INTEGRATION IN THE TWENTIETH CENTURY 3
  • 2: A MACROECONOMIC ASSESSMENT OF CENTRAL AMERICA 15
  • SUMMARY AND OVERVIEW 36
  • Note 36
  • PART II TRADE IN CENTRAL AMERICA 39
  • 3: THE STRUCTURE OF TRADE IN CENTRAL AMERICA 41
  • SUMMARY 58
  • Notes 59
  • References 59
  • 4: IDUSTRIALIZATION and TRADE IN CENTRAL AMERICA 61
  • Notes 85
  • References 85
  • 5: MEXICO AS A POTENTIAL MARKET FOR CENTRAL AMERICAN and CARIBBEAN PRODUCTS 87
  • Notes 98
  • PART III INDUSTRIALIZATION AND INTEGRATION IN CENTRAL AMERICA 101
  • 6: THE INTENSITY OF CENTRAL AMERICAN ECONOMIC INTEGRATION 103
  • CONCLUSIONS 111
  • Notes 113
  • Notes 114
  • 7: ASSEMBLY OPERATIONS IN CENTRAL AMERICA 117
  • References 149
  • 8: PANAMA: ECONOMIC INTEGRATION ALTERNATIVES, IMPLICATIONS, and PERSPECTIVES 153
  • Notes 178
  • References 179
  • 9: THE CENTRAL AMERICAN COMMON MARKET: AN ANALYSIS Of WELFARE EFFECTS FROM 1970 TO 1984 183
  • Conclusion 202
  • Notes 203
  • Notes 204
  • PART IV SPECIAL ISSUES 207
  • 10: ECONOMIC PROSPECTS FOR CENTRAL AMERICA IN THE DECADE OF THE 1990S 209
  • Notes 220
  • REFFERENCES 220
  • 11: A REVIEW OF ECONOMIC POLICIES and STRATEGIES FOR TRADE and INDUSTRIALIZATION IN CENTRAL AMERICA 223
  • CONCLUSION: WHERE TO FROM HERE? 232
  • References 235
  • 12: THE DILEMMA OF EXPORT RIVIVAL: NICARAGUAN AGRICULTURE AT A TURNING POINT 237
  • Notes 251
  • References 251
  • 13: CHALLENGES and PROSPECTS FOR CENTRAL AMERICA IN A GLOBAL TRADE CONTEXT 253
  • BIBLIOGRAPHICAL ESSAY 271
  • SELECTED BIBLIOGRAPHY 277
  • Index 279
  • ABOUT THE CONTRIBUTORS 289
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