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This article investigates how the COVID-19 pandemic affected home and host countries’ FDI margins. Heckman estimation of monthly bilateral FDI data indicates the following: (1) The pandemic reduced...

This study assesses the export potential of East Asia for the Caribbean within the framework of a structural gravity model. Export potential of 30% is estimated to be available to the Carib...

CARICOM countries have determined that the export of services is the platform for future development of their economies in light of the loss of preferences for their traditional agricultural exports. This paper aims to determine if services can indeed fulfill this objective for the region within the context of international export competitiveness. We addressed the following questions: Which services exports in CARICOM countries are globally competitive; what is the degree of diversification in services exports; and what is the extent of export similarity in services in CARICOM. On a whole, other than Travel Services, and to a much lesser extent, Insurance Services, very few services exports in CARICOM countries are globally competitive. Most notably, Financial Services in the region, a sector touted as one to which several CARICOM countries are looking for future economic growth and development, are not competitive. St. Lucia and Jamaica are the only countries to exhibit advantages in Computer and Information Services and Personal, Cultural, and Recreational Services respectively. Guyana is competitive in Communications Services and Royalties and License Fees and Suriname in Transportation Services, Government Services and Other Business Services. Further, there is little diversification in services exports. Compounding this problem, there is a high degree of services exports similarity. If countries in the region wish to stake their future on the performance of services, regional governments will need to put in place strategies to enhance the sector’s competitiveness.

This paper assesses Barbados' competitiveness within the EU market in light of its recent signing of an Economic Partnership Agreement (EPA) with the EU in 2008. Using SITC data from 1992-2006, indices of revealed comparative advantage (RCA) were calculated. We found that Barbados possesses comparative advantages in Live Animals; Raw Sugars, Beet and Cane; and Spirits. However, policies such as the EU's Common Agricultural Policy (CAP), stringent sanitary and phytosanitary requirements, onerous rules of origin and non-tariff barriers including technical barriers to trade, threaten to undermine these advantages. These developments strongly suggest that Barbados must move agriculture up the value chain and increase value-added, as well as integrate it more fully with other sectors of its economy. Greater attention must be focused on countries in the EU other than the UK, if full advantage is to be taken of the EPA, as the UK market is already mature. There is evidence that export opportunities to these countries exist in other commodity groups (Fuels, Lubricants, etc.; Animal, Vegetable Oils Fats, Wax; Chemicals, Related Products; Manufactured Goods). When these issues are placed within the context of Barbados' history of weak capacity to take advantage of the market access opportunities available from their trading arrangements, the overarching challenge for Barbados is one of effective market access. This will require, among other things, a capable export promotion agency. The export of non-traditional commodities should be promoted, and greater support, perhaps in the form of incentives, should be provided to large firms that are not yet exporters to encourage them to look beyond the domestic market.