Puerto Rico: Independence, Industrial Policy, and Growth

Puerto Rico is facing its deepest economic crisis since the twentieth century, largely due to its unique political and economic relationship with the US. This book presents policy recommendations to help Puerto Rico achieve sustainable development, including studying important industrial policy options and trade issues, and discussing the potential role of market-based environmental policies and income convergence. The analysis suggests that it is in the best interest of Puerto Rico and the US to set economic policies consistent with political independence for Puerto Rico to achieve sustainable economic growth and development. Access to international markets at lower transaction costs is crucial for this purpose.

\n Format: Hardback
\n Length: 142 pages
\n Publication date: 12 December 2017
\n Publisher: Lexington Books
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Puerto Rico is currently facing its most severe economic crisis since the first half of the 20th century. The unique political and economic relationship between the United States and Puerto Rico is widely believed to be a significant factor contributing to this crisis. In light of these considerations, and considering the imposition of the Financial Oversight Management Board by the US government, this book presents policy recommendations aimed at helping Puerto Rico achieve sustainable development.

A set of partial equilibrium models is employed to examine important industrial policy options and trade issues. Additionally, this book explores the potential role of market-based environmental policies and addresses issues related to income convergence. The analytical approach used to study the Puerto Rico-US relationship presented in this book is novel in the literature and contributes to the analysis of market-based environmental policy.

The overarching conclusion of this book is that it is in the best interests of Puerto Rico and the United States to establish economic policies that align with an equilibrium characterized by political independence for Puerto Rico. This would facilitate sustainable economic growth and development in the region.

Puerto Rico's economy possesses significant potential for long-term growth and prosperity. However, for factors of production to be utilized effectively and efficiently, Puerto Rico's economy requires access to international markets at reduced transaction costs. This is primarily achievable through an equilibrium characterized by political independence, which grants Puerto Rico the autonomy to make its own economic decisions and establish its own trade policies.

Access to international markets at lower costs has several benefits. It can help restore market credibility, regain access to credit markets at affordable rates, and achieve significant efficiency gains. By expanding its trade opportunities, Puerto Rico can attract investment, promote innovation, and create new job opportunities.

International trade should be at the core of development and growth policy. This book makes a compelling argument for prioritizing international trade based on efficiency considerations. By opening up markets and promoting free trade, countries can increase productivity, reduce costs, and enhance competitiveness. This, in turn, can lead to economic growth, improved living standards, and increased social welfare.

In conclusion, Puerto Rico is facing a critical economic crisis, and the unique political and economic relationship between the US and Puerto Rico plays a significant role in this situation. This book presents policy recommendations aimed at helping Puerto Rico achieve sustainable development. By prioritizing international trade and promoting political independence, Puerto Rico can unlock its economic potential and achieve long-term growth and prosperity.

\n Weight: 368g\n
Dimension: 159 x 236 x 19 (mm)\n
ISBN-13: 9781498556835\n \n