The capital city of Panama is Panama City
The nation of Panama?Yes it has roads!
San Jose, Costa Rica, is the capital of the North American nation other than Panama that is closest to the Panama Canal.
The United States never acquired Panama. The United States leased the Canal Zone, a strip of land across the nation of Panama. The nation of Panama won its independence from the South American nation of Colombia, as did Venezuela and Ecuador.
Panama is bordered on the west by the Central American nation of Costa Rica. It is bordered on the East/Southeast by the South American nation of Columbia.
The reason why Panama is called a nation of Central America is because of the US interest in the Panama Canal, which was vital to U.S. global operations which led to the United States invasion of Panama 1989.
Costa Rica
North and South America are linked by the nation of Panama and the Panama Canal. The narrow strip of land is called the Isthmus of Panama. It is in-between the Caribbean Sea and the Pacific Ocean.
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The United States formally recognized Panama as a nation on November 18, 1903. Panama has declared its independence from Colombia not long before that.