central america free trade agreement (cafta) and the rural economies of central america: a concep...

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production actually increased in many areas receiving the payments due to the isolation of many rural areas and their large comparative know-how in staple crop production. The isolation may be the cause of preventing staple prices from falling after NAFTA, while the higher income from PROCAMPO payments led to an increased local demand for staple crops. The higher demand, in turn, led to higher local prices and increase production.


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