Front Matter Page
Western Hemisphere Department
Contents
ABSTRACT
EXECUTIVE SUMMARY
I. INTRODUCTION AND MOTIVATION
II. TRACKING INSTITUTIONAL INTEGRATION IN THE CARIBBEAN
A. The Context
B. The Evolution of Institutional Integration in the Caribbean
C. Current Gaps in the Implementation Status
III. TRACKING ECONOMIC INTEGRATION
A. Inflation and Exchange Rate Convergence
B. Trade Integration
C. Synchronization of Economic Activity
D. Income Convergence
E. Financial Integration
F. Economic Integration: Putting it all Together
IV. UNDERSTANDING THE IMPLEMENTATION CHALLENGES
V. ECONOMIC BENEFITS FROM REGIONAL INTEGRATION
A. Potential Benefits from Trade Liberalization—A CGE Model Analysis
B. Benefits of Labor Market Integration—A GIMF Model Analysis
VI. WAY FORWARD: POLICY HARMONIZATION AND COOPERATION INITIATIVES A LOW HANGING FRUIT?
A. Advancing Policy Coordination in the Financial Sector
B. Building Resilience to Natural Disasters and Climate Change
C. Fighting Crime in the Caribbean
D. Avoiding Race to the Bottom
VII. SUMMARY AND CONCLUDING REMARKS
A. Part I. Free Trade Area and Customs Union (FTA/CU)
B. Part II. Common Market (CM)
C. Part III. Economic Union (EU)
D. Total Economic Integration (TEI)
BOXES
1. Provisions for Financial Integration in Caribbean Community (CARICOM)
2. Regional Cooperation to Strengthen Regulatory and Supervisory Frameworks
3 Various Regional Initiatives to Tackle Crime in the Caribbean
4. Tax Incentives in the Caribbean
5. Competition Across CBI Programs
FIGURES
1. Caribbean Community (CARICOM)
2. Revised Treaty of Chaguaramas
3. The Five Stages of Regional Institutional Integration
4. Key Milestones of Institutional Integration in CARICOM
5. Key Milestones of Institutional Integration in Eastern Caribbean
6. Indices of Regional Integration
7. Average Tariff Rates (in percent)
8. Intra-Regional Movement of Skilled Persons
9. Banking System Interlinkages in the Caribbean
10. Interest rate Correlations in the Caribbean, 2007–2016
11. Integration of Stock Markets in the Caribbean
12. Stock Prices of Actively-traded Companies Listed in Barbados, Jamaica, Trinidad and Tobago
13. Correlation Matrix of Treasury Bill Rates, 2015–2017
14. The Caribbean: Average Tariff Rates, 2015–2017
15. The Caribbean: Impacts of Further Liberalization
TABLES
1. Actions Taken Toward Implementation of the CSME
2.The Caribbean: Trade Linkages
2.The Caribbean: Trade Linkages
3.Selected Indicators of Economic Integration
4. Trade-weighted Average Tariff Rates of CARICOM Members
5. Ad valorem Equivalents of NTMs in CARICOM
6. Impacts of CARICOM Trade Liberalization
7. Effects of CARICOM Trade Liberalization on Real Factor Prices and Unskilled Employment
REFERENCES
ANNEXES
I. Indices of Institutional Integration in the Caribbean
II. CARICOM Institutional Structure
III. The European Union Integration