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This Selected Issues paper examines several real sector issues, including estimates of potential output, the effect of Intel’s withdrawal on gross domestic product (GDP), labor market and inequality and electricity prices in Costa Rica. The production function approach shows that the main drivers of fluctuations in GDP growth are total factor productivity (TFP) and labor supply. These results on TFP, however, should be interpreted with caution. The TFP measure is a residual—the difference between output growth and the growth in the quantity (and quality) of inputs. Estimates suggest that potential GDP growth is about 4.3 percent, the output gap is broadly closed, and Intel’s withdrawal will lower real GDP growth in about 1/2 percentage point. Significant wage premia are identified across public versus private sectors and some evidence of intergenerational inequality is also presented. Electricity tariffs are found to be regionally competitive albeit with inefficiencies in their determination.

Costa Rica -- Economic conditions. --- Costa Rica -- Economic policy. --- Costa Rica -- Politics and government. --- Costa Rica

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For Costa Rica, the Dominican Republic; ""Central America free trade agreement (CAFTA-DR) has been more than a trade agreement. Costa Rica has used trade liberalization and promotion of international trade as a core development strategy for decades. CAFTA-DR consolidated benefits that had previously been unilaterally extended under the Caribbean Basin Initiative into a multilateral free trade agreement, providing a more stable environment for trade relationships. Beyond just being a trade agreement, CAFTA-DR opened up state monopolies in telecommunications and insurance, which polarized

Costa Rica -- Commercial policy. --- Costa Rica -- Economic conditions -- 1948-. --- Costa Rica -- Economic policy. --- Free trade -- Costa Rica. --- Free trade --- Business & Economics --- Economic History --- Costa Rica --- Economic conditions --- Commercial policy. --- Economic policy. --- Ḳosṭah Riḳah --- República de Costa Rica --- Republic of Costa Rica --- Central America (Federal Republic) --- Коста-Рика --- Kosta-Rika --- Республика Коста-Рика --- Respublika Kosta-Rika --- Kosta Rrika --- Kustarika --- Коста-Рыка --- Kosta-Ryka --- Рэспубліка Коста-Рыка --- Rėspublika Kosta-Ryka --- Kostarika --- Κόστα Ρίκα --- Δημοκρατία της Κόστα Ρίκα --- Dēmokratia tēs Kosta Rika --- Kostariko --- Cósta Ríce --- Poblacht Chósta Ríce --- Yn Coose Berçhagh --- Coose Berçhagh --- Pobblaght y Choose Verçhagh --- Костарикмудин Орн --- Kostarikmudin Orn --- 코스타리카 --- K'osŭt'arik'a --- Коста-Рикæ --- Kosta-Rikæ --- קוסטה ריקה --- רפובליקת קוסטה ריקה --- Republiḳat Ḳosṭah Riḳah