Risk Aversion through Nontraditional Export Promotion Programs in Central America

摘要

The paper discusses the growing importance of policies by the Central Americancountries of Costa Rica, Dominican Republic, Guatemala, Honduras, El Salvador, and Mexico to promote nontraditional agricultural exports. It demonstrates that these programs are rational if countries are risk-averse utility maximizers. It describes the characteristics that crops must have for utility maximizers to benefit from nontraditional export promotion programs. It also shows that the recent nontraditional vegetable and fruit exports of Central America can meet these requirements.