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The overall economic performance of Caribbean countries has declined markedly in recent times. The weak export performance of these trade-oriented economies is highlighted as the principal factor responsible for the economic deterioration. The author attempts to identify the major determinants of their export performance. Two alternative approaches to this issue are adopted, the Feder model and an alternate, which suggests the important nexus between foreign exchange, needed imports and exports. The role of government institutions and their influence on exchange rates are also analyzed. Scholars in economic development, Latin America, as well as international financial institutions will find this comprehensive study on the English speaking Caribbean countries of Jamaica, Trinidad and Tobago, and Barbados a useful tool.
List of contents
Acknowledgments
IntroductionThe Importance of Trade
The Key Issues
Outline
Notes
The Caribbean's Export PerformanceReview of the Export Performance
Descriptive Analysis of the Export Performance
A Constant Market Share Analysis
Revealed Comparative Advantage
Data and Results
Data
Results
An Assessment of the Results
Notes
Appendix 2.A.1: Derivation of the CMS Model
Appendix 2.A.2: Commodities and Markets for CMS Analysis
"Incentives" and Institutional Support for ExportsPolicies Aimed at Achieving Neutral Incentives
"Incentives" and Real Effective Exchange Rates
Instruments of Export Development Policy in CARICOM Countries
Notes
Appendix 3.A.1: A Typical Export Inventive System
Appendix 3.A.2: Plots of Real Effective Exchange Rates for Selected CARICOM Countries
Exports and Small Country GrowthFeder's Model Applied to Small Developing Countries
Data and Results
Output and Foreign Exchange Flows
Data and Results
Notes
Appendix 4.A.1: Derivation of Feder's Model
Appendix 4.A.2: The List of Small Countries and the Dataset
Appendix 4.A.3: Test for Heteroscedasticity
Appendix 4.A.4: Production Functions
Determinants of the Caribbean's Export PerformanceModel of Export Supply: Theoretical Discussion
Model Specification
Nontraditional Exports
U.S. Clothing Market
Industry-Specific Export Equation: Clothing
Industry-Specific Export Equation: Miscellaneous Manufactures
Aggregate Export
Notes
Appendix 5.A.1: The Imperfect Substitutes Modes
Appendix 5.A.2: Derivation of Capital Stock Estimates
Appendix 5.A.3: Plots of Clothing Exports to the U.S. Market-Selected Countries (1968-88)
The Regional DimensionModelling the Export Sector
Institutional Analysis
notes
Future Directions for ResearchBibliography
Index
About the author
ARNOLD MEREDITH McINTYRE is an active researcher on trade and development policy issues in the CARICOM region. Recently, he was a country economist at the Caribbean Development Bank and presently, holds the position of Chief (Trade & Economic Policy) at the Economic Affairs Secretariat of the Organization of Eastern Caribbean States.
