The Central American Integration System in a New Global Economic Context
| Autor | Sergio Rivero |
| Cargo | Academic Director of the School of International Relations in ULACIT |
| Páginas | 39-57 |
Rhombus-ULACIT
|
Vol.1 Núm. 1
|
enero-ju nio 2021
|
ISSN: 16 59 1623 39
The Central American Integration System
in a new global economic context
M.A. Sergio Rivero Soto
1
Date received: July 17, 2020 | Approval Date: August 7, 2020
INVESTIGACIÓN
Abstract1
In the current global context, international economic relations have taken a predominant
role for developing countries. This article offers an overview of the current state of the
Central American Integration Process and its expansion into international markets, with
current macroeconomic conditions and a descriptive analysis of time series data of trade
and Foreign Direct Investment (FDI) between 2014 and 2019, its growing commercial
relationship with China and its geostrategic role in the continent, this paper analyses the
opportunities and challenges of a Central America-China partnership with the intention to
lay the foundations for the creation of a strategic trade and multilateral cooperation agenda
Key Word:
Central America, China, international trade, FDI, Belt and Road Initiative
JEL Codes:
F15; F50; F63
1 Academic Director of the School of International Relations i n ULACIT. Currently enrolled in the Ph D in
Public Management and Business Science at the Centra l American Institute for Public Administrat ion.
ORCID: 0000-0001-9028-2715
Rhombus-ULACIT
|
Vol.1 Núm. 1
|
enero-ju nio 2021
|
ISSN: 16 59 1623 40
Rivero Soto INVESTIGACIÓN
Introduction
The year 2021 will mark the Bicentennial of the Independence of Central America and the 30th
anniversary of the Central American Integration System (SICA), a sui generis
Secretariat for Central American Economic Integration (SIECA) was conceived as the technical and
administrative body of the integration process with the mission to contribute to the consolidation of the
China as the second largest economy in a renewed multipolar world where the international economic
Integration Process and its expansion into international markets, with a focus on trade and investment
Based on an analysis of the current macroeconomic conditions and a descriptive analysis of time series
data of trade and Foreign Direct Investment (FDI) between 2014 and 2019, its growing commercial
relationship with China and its geostrategic role in the continent, this paper aims to analyse the
opportunities and challenges for SICA countries in a new global economic framework.
Economic integration in a multilateral trading system
Studies on economic integration, for the most part, are studies of a theoretical-analytical nature that
adhere to the neoclassical theory of international trade. According to Haack (1983), integration is
generally conceived as (i) an agreement on tariffs, under the framework of a free trade area or customs
union, (ii) a partial or complete liberalization of the movement of production factors and (iii) cooperation
(1983) makes an exhaustive description of the different theories that support economic integration, and
customs union, common market , economic union and complete economic integration.
Bela Balassa (1961), asserts that economic integration is a dynamic and constant phenomenon that must
be considered as a process and as a state of affairs. Economic integration is a process that leads to
the progressive elimination of various discriminatory practices and a state of affairs characterized by
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