Reports
Discussion Papers
No.500 The Source of Sustainable Growth in Costa Rica
by Kaoru NABESHIMA, Tadashi ITO, Kiyoyasu TANAKA , Mila KASHCHEEVA, David BULLON, Natalia SANCHEZ
March 2015
ABSTRACT
Costa Rica has some concerns for the “middle income trap” stemming from her perceived weakening export competitiveness, intensifying competition in attracting FDI inflow; and apparent lack of innovation capabilities. Quantitative analyses on the impact of recent FTAs suggest only large firms benefit from FTAs suggesting the need for improving utilization by smaller firms. Continuing attraction of potential MNCs backed by human capital development is necessary. In pursuing its development goals, Costa Rica should be mindful of its reputation as an environmentally friendly place.
Keywords: Costa Rica, middle income trap, FTA, innovation
JEL classification: F15, F21, O31, O54
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.