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Free trade agreements and the credibility of trade reforms

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  • David M. Gould
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    Abstract

    David M. Gould argues that free trade agreements can help developing countries establish the credibility essential to successful trade reform. Credibility, he explains, is necessary if trade reform policies are to entice investment into the economic sectors where the liberalizing country has its greatest comparative advantage. As Gould explains, a free trade agreement enhances the credibility of trade reform policies by providing evidence of a government's long-term commitment to free trade and by discouraging protectionist policies in foreign markets. Gould concludes with an outlook for U.S.-Mexican free trade.

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    Bibliographic Info

    Article provided by Federal Reserve Bank of Dallas in its journal Economic and Financial Policy Review.

    Volume (Year): (1992)
    Issue (Month): Q I ()
    Pages: 17-27

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    Handle: RePEc:fip:fedder:y:1992:i:qi:p:17-27

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    Keywords: Free trade ; International trade;

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    Cited by:
    1. Fernández, Raquel, 1997. "Returns to Regionalism: An Evaluation of Non-traditional Gains from RTAs," CEPR Discussion Papers 1634, C.E.P.R. Discussion Papers.
    2. R. I. Udegbunam, 2002. "Openness, Stock Market Development, and Industrial Growth in Nigeria," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 69-92.
    3. David M. Gould, 1995. "Mexico's crisis: looking back to assess the future," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-12.
    4. Mohammad Amin, 2004. "Time Inconsistency of Trade Policy and Multilateralism," International Trade 0402002, EconWPA.

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