The CAFTA-DR Free Trade Agreement — Analyzing its effects in a modern gravity framework

نویسندگان

چکیده

Abstract We study the effects of Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR), signed in 2004, on trade flows its member states. Relying structural gravity model framework, we find evidence both increases and decreases members’ bilateral trade, but also significant differences these depending direction trading members. Using a counterfactual analysis, are able to measure general equilibrium CAFTA-DR, finding that it has, general, increased total exports income levels for El Salvador, Guatemala, Honduras, Nicaragua. However, sizable diversion welfare losses Costa Rica Republic.

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ژورنال

عنوان ژورنال: International Economics and Economic Policy

سال: 2022

ISSN: ['1612-4812', '1612-4804']

DOI: https://doi.org/10.1007/s10368-022-00551-8