wow-inequalities/02-data/intermediate/wos_sample/87ca464f85d7880823260c9f36568a66-sanchez-marco-v.-an/info.yaml

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2023-09-28 14:46:10 +00:00
abstract: 'Costa Rica also adopted the Washington Consensus type of reforms, but in
a much more gradual and less `orthodox'' way than the other countries in
the region. It has combined import liberalization with active export
promotion. By the 1980s, Costa Rica already had relatively few
restrictions on capital inflows. Nonetheless, further liberalization of
the capital account and legislative changes easing the entry of maquila
industries and establishment of firms in export-processing free zones
led to a boom in foreign direct investment in the 1990s. Despite the
inflow of foreign capital, the government managed to stop the exchange
rate from appreciating, keeping it competitive during most of the 1990s
with a managed floating exchange regime. Economic growth has been
volatile but on average the economy expanded at an annual growth rate of
4.3 per cent during 1985-2001. Exports have been the engine of Costa
Rica''s growth performance, especially non-traditional exports supported
by export promotion policies (tax credit certificates, export-processing
free zones and maquilas) and, since the late 1990s, exports by the Intel
plant in the country. Growth in employment lagged behind gross domestic
product growth, but was still substantially higher than growth of the
labour force. Most new jobs were created in the formal sector. Real
labour income increased, but due to growing demand for skilled workers,
labour income inequality increased significantly. Income inequality also
increased at the household level. The incidence of absolute poverty has
remained stable, however, since the mid-1990s, thanks to an increase in
employment and average income. Simulations with the computable general
equilibrium model for Costa Rica indicate that trade liberalization
tends to lead to increasing inequality of income, given the combined
effect of significantly higher labour income in the most dynamic
economic sectors, especially those intensive in the use of skilled
workers, and a reduction in labour incomes in agriculture. Simulations
also show, however, that because of the generally positive outcomes for
employment, trade liberalization seems to have generated positive,
though small, effects towards poverty reduction. Poverty also falls
under the scenario of further trade integration through the Free Trade
Area of the Americas and a worldwide World Trade Organization agreement.
Not all workers will benefit from trade integration, however. Those in
agriculture, in particular, would face falling employment and real
incomes.'
affiliation: 'Sanchez, Marco V., ISS, The Hague, Netherlands.
Sauma, Pablo, Natl Univ Costa Rica, San Jose, Costa Rica.'
author: Sanchez, Marco V. and Sauma, Pablo
author_list:
- family: Sanchez
given: Marco V.
- family: Sauma
given: Pablo
booktitle: 'WHO GAINS FROM FREE TRADE: EXPORT-LED GROWTH, INEQUALITY AND POVERTY IN
LATIN AMERICA'
da: '2023-09-28'
editor: Vos, R and Ganuza, E and Morley, S and Robinson, S
files: []
isbn: 978-0-203-96583-2
language: English
number-of-cited-references: '18'
pages: 204-230
papis_id: e240343daf17494261e9f5134d583b72
ref: Sanchez2006costarica
series: Routledge Studies in Development Economics
times-cited: '1'
title: Costa Rica - export orientation and its effect on growth, inequality and poverty
2023-10-01 08:15:07 +00:00
type: article
2023-09-28 14:46:10 +00:00
unique-id: WOS:000278891300008
usage-count-last-180-days: '2'
usage-count-since-2013: '5'
volume: '50'
web-of-science-categories: Economics
year: '2006'