Trade integration and export diversification: El Salvador’s trade with the United States and Central America

Abstract

This article conducts a comparative analysis of the diversification of El Salvador’s baskets of exports to the United States and Central America. It uses the most detailed level of disaggregation available and organizes products by technology intensity. The results show greater export diversification and sophistication in trade with Central America. Evidence is also found that, where El Salvador is concerned, it is more advisable to strengthen South-South integration, especially within Central America, than North-South integration.