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China and Central America

In: China, Latin America, and the Global Economy

Author

Listed:
  • Henrique Estides Delgado

    (University of Denver
    University of Chieti-Pescara)

  • Aaron Schneider

    (University of Denver
    University of Chieti-Pescara)

Abstract

The argument in this chapter is that the shared economic and strategic interests of China and Central American countries lie in a medium-term approach focused on structural change. Central America needs to upgrade the value of its exports, increase domestic consumption, especially for the most vulnerable, and advance regional integration. China could help by absorbing more Central American exports and helping to balance trade; invest in infrastructure, firms, and activities to encourage higher value-added exports; encourage the structural changes that raise domestic consumption, especially by the poorest; and invest in infrastructure that contributes to greater regional integration. One way of viewing the relationship is in terms of the flying geese model that has served East Asia so well, with Central America integrating into value chains led by China with the nearby US market as target. Important benefits for the region could include a transformation of the countryside to raise productivity and incomes, and steady upgrading toward a higher-tech economic profile. The resulting peaceful, developed, and mutually beneficial partnership with China could be of shared strategic interest to both China and the US.

Suggested Citation

  • Henrique Estides Delgado & Aaron Schneider, 2023. "China and Central America," Springer Books, in: Aaron Schneider & Alessandro Golombiewski Teixeira (ed.), China, Latin America, and the Global Economy, chapter 0, pages 189-218, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-18026-2_9
    DOI: 10.1007/978-3-031-18026-2_9
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