Publication

This paper provides conceptual ideas and suggestions for economic integration in North, Central and South America. The author states that economic policy challenges in the region have changed and revised binding constraints on growth have emerged. The region should therefore consider updated integration models that help address such constraints in pragmatic, politically feasible ways. The paper concludes that the gains from a regional investment agreement could be quite substantial and that resulting reforms would likely boost growth significantly and particularly raise the income of the poor by helping small businesses move into the formal sector.