Abstract

ABSTRACT This research paper study the trade effects of the Dominican Republic-Central America and United States free trade agreement (DR-CAFTA), measuring specifically the changes on exports after the ratification of this agreement. The two main objectives were to analyze the impact on the change of exports volume from Nicaragua to United States, also determine which variables caused more effect on the quantity of exports. Ratification of FTA came with the assumption of increase the exports of both participants on different products. For DR-CAFTA beef was one of the products included, beef is within the top five exportations products from Nicaragua. For these purposes an econometric model was applied, using annual data before and after of the beginning of the agreement. The results found that DR-CAFTA had a positive effect over exports increasing the quantity exported by approximately 19,000 tons, and for the purposed model the variable which caused more effect, besides the DR-CAFTA, is the import price of beef. Keywords Beef, Exports, Free Trade Agreements, Prices.

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