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Intraindustry Specialization And The United States–Central America–Dominican Republic Free Trade Agreement

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  • Don P. CLARK

Abstract

This paper examines changes in intraindustry specialization indicators over the 1992–2004 period to assess the potential for structural adjustment problems that may arise in the United States with growth in trade resulting from the United States–Central America–Dominican Republic Free Trade Agreement (CAFTA‐DR) between the United States and six Central American countries—Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, and the Dominican Republic. CAFTA‐DR will expand market access for US exporters. Few US industries are likely to encounter structural adjustment problems. Given the relatively large size of the US economy, and the small number of industries that face potential adjustment pressures, the United States should have liberalized all trade immediately. When potential adjustment pressures are indicated, long tariff phaseouts, complex rules of origin, and import safeguards are used to delay factor adjustments in import‐sensitive industries.

Suggested Citation

  • Don P. CLARK, 2007. "Intraindustry Specialization And The United States–Central America–Dominican Republic Free Trade Agreement," The Developing Economies, Institute of Developing Economies, vol. 45(4), pages 491-506, December.
    • Handle: RePEc:bla:deveco:v:45:y:2007:i:4:p:491-506
    DOI: 10.1111/j.0012-1533.2007.00050.x
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    1. Don P. Clark & Thomas M. Fullerton, Jr. & Duane Burdorf, 2001. "Intra-industry trade between The United States and México: 1993-1998," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 16(2), pages 167-183.
    2. Abdul Azhar & Robert Elliott & Chris Milner, 1998. "Static and dynamic measurement of intra-industry trade and adjustment: A geometric reappraisal," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 404-422, September.
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    1. Fullerton, Thomas M., Jr. & Sawyer, W. Charles & Sprinkle, Richard L., 2010. "Intra-industry trade in Latin America and the Caribbean," MPRA Paper 34854, University Library of Munich, Germany, revised 2011.
    2. Chaves, Luis Fernando & Friberg, Mariel D. & Hurtado, Lisbeth A. & Marín Rodríguez, Rodrigo & O'Sullivan, David & Bergmann, Luke R., 2022. "Trade, uneven development and people in motion: Used territories and the initial spread of COVID-19 in Mesoamerica and the Caribbean," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    3. Carolina Caicedo Marulanda & Jhon James Mora Rodríguez, 2011. "Comercio intraindustrial Colombia-Estados Unidos. El caso de los bienes altamente tecnológicos," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, June.

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