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Did Dr-Cafta Affect The Exports Of The Dominican Republic To The United States?, Maria Ivanova Reyes Peguero, Asger V. Hansen
Did Dr-Cafta Affect The Exports Of The Dominican Republic To The United States?, Maria Ivanova Reyes Peguero, Asger V. Hansen
Economics Faculty Publications
This article evaluates the impact the Dominican Republic and Central America Free Trade Agreement (DR-CAFTA) had on the exports of the Dominican Republic (DR) to the United States. We estimate a gravity model for the DR exports to the 109 trade partners of the country from 1990 to 2014. This model quantifies the effect of the DR-CAFTA since 2007, when the agreement was ratified, and finds that the DR-CAFTA negatively affected DR exports to the US. We conduct further analysis of factors that could explain the decline in exports, in spite of the ratification of the agreement. We find that …
Unemployment And Economic Integration For Developing Countries, Haiwen Zhou
Unemployment And Economic Integration For Developing Countries, Haiwen Zhou
Economics Faculty Publications
While financial or trade integration between countries may increase the size of the market and aid the adoption of more advanced technologies, will it also increase the level of urban unemployment for a developing country? In this model, there is unemployment in the urban sector. Manufacturing firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Financial firms provide capital to manufacturing firms and they also engage in oligopolistic competition. We show that an increase in the wage rate in the manufacturing sector changes neither the level of technology nor the level of employment in the manufacturing …