The peculiarities of the financial integration development of the Central America and the Caribbean countries at the present stage

Authors

  • Anastasia A. Nekrasova National Research University Higher School of Economics, 11 Mjasnickaja Street, Moscow 101000, Russia

Keywords:

financial integration, integration processes, SICA, Caribbean Community, regression model

Abstract

The article is devoted to the analysis of integration processes within the Central American Integration System (SICA) and the Caribbean Community with a special focus on the specifics of financial integration at the current stage of development. The paper aims to empirically test the hypothesis that despite the ongoing process of financial integration formation between 2013 and 2024, the harmonisation of the banking sector, investment vehicles and the stock market stimulates the growth of mutual trade between Caribbean Community and SICA countries. The econometric analysis reveals that most factors drive exports between Caribbean Community and SICA countries. It is noted that GDP per capita growth has a negative impact: a 1 per cent increase in this indicator entails a 1.495 per cent decrease in exports. This trend is explained by the fact that in periods of economic hardship, the countries of the region increase mutual trade, while in more stable times they focus on external partners, particularly the United States. The results of this paper may be of interest to research centres, companies and international organisations specialising in the study of integration processes in Caribbean Community, SICA and other groupings.

Author Biography

  • Anastasia A. Nekrasova, National Research University Higher School of Economics, 11 Mjasnickaja Street, Moscow 101000, Russia

    research associate, analyst of the Institute of State and Municipal Management

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Published

2025-07-07

Issue

No. 1 (2025): Journal of the Belarusian State University. Economics

Section

F. International Economics

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How to Cite

The peculiarities of the financial integration development of the Central America and the Caribbean countries at the present stage. (2025). Journal of the Belarusian State University. Economics, 1, 15-23. https://journals.bsu.by/index.php/economy/article/view/7036