1996

Abstract

Costa Rica has managed to combine an active agenda in the Multilateral Trade Negotiations (MTNs) at the WTO with the negotiation of several Preferential Trade Agreements (PTAs). Such PTAs, most notably those with the US, China and the EU, will boost the share of total exports benefiting from preferential access in the destination markets from 24% to over 83%. Along this path of trade liberalization, the country has placed a strong emphasis on the attraction of Foreign Direct Investment (FDI) in hightech manufacturing and services activities, producing a substantial transformation in the structure of its exports and inserting a fair share of the economy into Global Value Chains (GVCs). As a result, about 43% of the country’s total exports are related to GVCs, with an average of 36% of such exported value being added domestically. Labor and capital employed by GVC-participating firms account for about 40% of the domestic contribution to exports, while locally-provided services and supplies account for almost one sixth and one tenth, respectively. In turn, the relative importance of different services is quite variable across the GVCs identified.

Countries: Costa Rica
Loading

Article metrics loading...

/content/papers/25189808/108
2011-05-23
2022-05-28
http://instance.metastore.ingenta.com/content/papers/25189808/108
Loading
  • Published online: 23 May 2011
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error
aHR0cHM6Ly93d3cud3RvLWlsaWJyYXJ5Lm9yZy8K