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Trade liberalization in sub-Saharan Africa: stagnation or growth?

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  • Hiranya Mukhopadhyay

    (National Institute for Public Finance and Policy, New Delhi, India)

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    Abstract

    This paper argues that greater the liberalization of imports in a sub-Saharan African country, the more significant is the decline in its rate of growth due to excessive competitive imports. Furthermore, this result was strengthened during recession in high income economies during the late eighties and early nineties. This could be explained by the fact that when industrial countries are suffering from recession, the terms of trade may move in favour of developing countries as a result of a fall in the dollar price of importables. Moreover, it is shown in the paper that the decline in the dollar price of importables is positively related to the degree of import liberalization, and this association improves during recession in high income economies. The volume of competitive imports may not rise in this circumstance in a country that has a well designed 'interventionist' trade regime. Copyright © 1999 John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 11 (1999)
    Issue (Month): 6 ()
    Pages: 825-835

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    Handle: RePEc:wly:jintdv:v:11:y:1999:i:6:p:825-835

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    Web page: http://www3.interscience.wiley.com/journal/5102/home

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    References

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    1. Mukhopadhyay, Hiranya, 1998. "Structural Adjustment Programs: Some New Findings," Review of Development Economics, Wiley Blackwell, vol. 2(2), pages 191-210, June.
    2. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
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    Cited by:
    1. Baliamoune-Lutz, Mina, 2009. "Entrepreneurship and Reforms in Developing Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    2. Mina Baliamoune-Lutz, 2011. "Growth by Destination (Where You Export Matters): Trade with China and Growth in African Countries," African Development Review, African Development Bank, vol. 23(2), pages 202-218.
    3. Akyeampong, Emmanuel & Fofack, Hippolyte, 2013. "The contribution of African women to economic growth and development in post-colonial Africa : historical perspectives and policy implications," Policy Research Working Paper Series 6537, The World Bank.
    4. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
    5. Mina Baliamoune-Lutz, 2007. "Entrepreneurship, Reforms, and Development: Empirical Evidence," ICER Working Papers 38-2007, ICER - International Centre for Economic Research.
    6. Léonce Ndikumana & Mina Baliamoune-Lutz, 2007. "The Growth Effects of Openness to Trade and the Role of Institutions: New Evidence from African Countries," UMASS Amherst Economics Working Papers 2007-05, University of Massachusetts Amherst, Department of Economics.
    7. Mina Baliamoune-Lutz, 2008. "On Growth and Development," ICER Working Papers 13-2008, ICER - International Centre for Economic Research.

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