Integration in the Caribbean
Abstract
Trade and economic integration improve welfare and productivity through several
channels. Trade increases market size to export and import, promotes gains from
specialization and economies of scale, and foster innovation and the spillover of
knowledge from foreign to domestic firms. International trade literature has shown that
the countries that benefit the most from trade are small countries like CARICOM
members.
In this policy note, we present several indicators of the evolution of trade indicators and
trade costs for CARICOM members. We analyze the level of tariffs, the performance
regarding trade facilitation, the participation in global value chains, and energy
integration.
As expected, trade figures for CARICOM are high compared to Latin American
countries, but there is still room to reduce tariffs with South American partners,
improve trade facilitation and deepen energy integration and participation in regional
and global value chains.
Parallel title
Policy Paper #23
Subject
Country / Region
Date
2023-07Cite this publication
Belongs to collection
Author
Allub, LianSchliesser, Reinier
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