Teekasap, PardFrutos, DinorahSamii, Massood2010-11-152010-11-152010-06-29https://hdl.handle.net/10474/1311Author's OriginalAs regional trading arrangements have spread over the last decades, the study of the relation between trade agreements and foreign direct investment still presents difficulties due to the multi-dimensional character of such relationship. This paper presents a system dynamics model that attempts to shed new light on how some of the Central American Free Trade Agreement (CAFTA-DR). Specifically we look at how the growth and distribution of the workforce in the non-agricultural (or industrial) and agricultural sector in six CAFTADR country members. The model results indicate that the provisions we considered tend to industrialize member countries as well as expand the agricultural sector in some countries in the long run. In addition, the model indicates that the treaty provisions drive up the GDP per capita for all member countries.1283013 bytesen-USAuthors retain all ownership rights. Further reproduction in violation of copyright is prohibitedCAFTAforeign direct investmentfree tradeCentral Americaimports and exportssystem dynamicsConference Paperapplication/pdf