Unleashing Central America’s Growth Potential : Honduras
Despite advances in the growth reform agenda in the last decade, Honduras remains the second-poorest country in Central America, with one of the lowest growth rates in income per capita. The objective of this study is to investigate the drivers and...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/146781627621831539/Honduras-Unleashing-Central-America-s-Growth-Potential http://hdl.handle.net/10986/36050 |
| Summary: | Despite advances in the growth reform
agenda in the last decade, Honduras remains the
second-poorest country in Central America, with one of the
lowest growth rates in income per capita. The objective of
this study is to investigate the drivers and constraints of
growth and productivity in Honduras and explore areas with
high growth potential. The value added of this study is to
provide an in-depth analysis of the drivers and constraints
of Honduras’s growth using a wide range of analytical tools.
According to the growth diagnostics methodology, this report
finds that the areas preventing faster growth are: (i)
corruption; (ii) security; (iii) property rights; (iv)
innovative activities; and (v) access of small firms to
finance. Tackling the identified growth constraints can help
Honduras in the transition from an exporter of
low-complexity products to an economy with higher share
complex products. This report has identified several key
areas in which Honduras lags its comparator and aspirational
countries, but which can help boost productivity and growth
over the medium to long term. They include: improving
transparency, accountability, and rule of law; reducing
crime and violence; creating an enabling environment for
innovation; improving the rule of law to better protect
property rights and reduce expropriation risk; increasing
the access of finance to small firms; and coordinating with
the private sector to identify missing public goods and
design mechanism to provide them. |
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