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How does globalization affect Costa Rica? 

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Open accessJournal ArticleDOI
Geoffrey Jones, Andrew Spadafora 
31 Citations
This article argues that although Costa Rica benefited from biodiversity and a pleasant climate, the country’s preeminence in ecotourism requires more than a natural resource endowment explanation.
It is statistically found that overall index of globalization may affect the rate of growth.
However, inequality appears to increase, likely because the middle class benefits from US migration, while the poor tend to make it no farther than Costa Rica.
Moreover, Panama and Costa Rica are the only countries that present improved living conditions at the end of the century when considering increases in gross domestic product (GDP) and the effects of climate change.
Arguably, the potential threat to sustainable development policies in Costa Rica can be identified in the phenomenon of postmodern capitalism.
A case study near the Pacific Coast of Costa Rica shows how synergies between international conservation ideologies, neo-liberal reforms, tourism (and associated real estate investment), and migration (as one strategy for livelihood diversification) lead to increased forest cover.
The main finding is that there are some favorable conditions to diffusing e- commerce in Costa Rica but the obstacles are not insignificant.
A recursive dynamic CGE model for Costa Rica shows that environmental taxes marginally reduce growth yet allow a sharp decrease of emissions, and that outward orientation alone promotes growth, but induces a risk of specialization in dirty activities.
We find these factors widespread in Costa Rica as a whole.
Nevertheless, Costa Rica and Argentina vary in the intensity of the adoption of global citizenship, most likely a result of divergent historical experiences with state sponsored violence.
There are some unique patterns for Costa Rica and Nicaragua that suggest that level of development and institutional arrangements may also be important.
We conclude that recovery and structural adjustment have been relatively successful in Costa Rica within a system where the labor market functions in an institutional context rather distant from the free market model.
We argue that such financialized practices further reinforce the territorial space of Costa Rica through the encoding of carbon within it.
Second, however, the recent expansion of new production activities in Costa Rica signals the limitations of the model and the need to incorporate the state as a central variable.
For the producers, economic functions are obvious, but on the basis of a year's research among the producers in Costa Rica, I feel that the importance of this-and the presence of other values-is often underestimated, even by otherwise knowledgeable people who have had no significant contact with this business at what is, quite literally, the grass-roots level.
As the third most common migrant destination context in the Western hemisphere, Costa Rica is grappling with its dual role as a nation of emigration and immigration and is attempting to maintain its “exceptional” national identity in the face of rapid globalization.

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