CARIFORUM and UK EPA Study

Natural capital

0.297 0.129 -0.023 0.427 0.779 0.270

-0.021 -0.123 0.176 0.612 0.540 -0.003 0.007

-0.025 -0.017

-0.408 0.161 2.918 2.227 -0.366 10.317 -0.407

-0.392 0.240 0.987 1.318 -0.343 0.831 0.136

Energy

0.633 0.044

-0.287 -0.172

Transport

ICT

-0.080 0.488

Institutions

1.776 0.277 0.418

-0.616 -0.135 0.509

Private sector

Structural Change 0.031

UK

Overall index: Human capital Natural capital

0.174 0.431 -0.062 -0.088 -0.111 0.405 0.304

Energy

Transport

ICT

Institutions

Private sector -0.323 Structural Change 0.507

Policy Implications The data show that it is critically important to embrace and promote policies that facilitate trade liberalization (openness), liquidity, growth in national output and productive capacity in order to promote international trade. Naturally, macroeconomic variables are interdependent; for example, trade increases national income and national income increases trade. In promoting productive capacity, countries will be better off to pay very close attention to the components of their comparative advantage. Trade must reinforce such areas while also exploring the advantages of other areas that can increase productive capacity. It is imperative to pay very close attention to the areas that interact negatively with the composite index so that productive

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