The role of Central American Trade in developing El Salvador’s high-value exports

Abstract

This paper describes the development and evolution of El Salvador’s industrial exports. This paper found that El Salvador’s exports to other Central American countries enhance business opportunities observed in an increase in the number of new products exported to this region and this products are more complex compared to the regular exports outside region. However, this paper also finds that the products that are exported first to Central America and then to the rest of the world are not the most sophisticated. El Salvador may benefit from trade diversion that prevents it from exporting high quality products to the world except Central America.