Advanced Search
MyIDEAS: Login to save this paper or follow this series

Trade Liberalization in Developing Economies: Modest Benefits but Problems with Productivity Growth, Macro Prices, and Income Distribution

Contents:

Author Info

Registered author(s):

    Abstract

    Arguments regarding trade and other forms of liberalization in developing countries are reviewed. Microeconomically, the standard case for liberalization is dubious under increasing returns to scale and when firms can invest directly in productivity enhancement. Distributional effects of commercial policy changes can be regressive and large, but the "rents" they generate can serve as a basis for effective policy intervention contingent on firms' performance. Macroeconomically, the case of liberalization rests on Say's Law, which is not always enforced. It is complicated by the facts that recent combined current and capital market liberalizations have been associated with strong exchange rates and high interest rates, and that output and productivity growth have positive mutual feedbacks which liberalization may well suppress. All these effects can only be sorted out by institutional and historical analysis at the country level, as opposed to cross-country regressions or computable general equilibrium models with causal structures favoring trade liberalization already built in.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.economicpolicyresearch.org/scepa/publications/workingpapers/1998/cepa0108.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Schwartz Center for Economic Policy Analysis (SCEPA), The New School in its series SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. with number 1998-05.

    as in new window
    Length: 42 pages
    Date of creation: Mar 1998
    Date of revision:
    Handle: RePEc:epa:cepawp:1998-05

    Contact details of provider:
    Postal: 6 East 16th Street, New York, NY 10003
    Phone: 212-229-5901
    Fax: 212-229-5903
    Email:
    Web page: http://www.economicpolicyresearch.org
    More information through EDIRC

    Related research

    Keywords: liberalization; productivity growth; income distribution;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Rob Vos, 2007. "What we do and don’t know about trade liberalization and poverty reduction," Working Papers 50, United Nations, Department of Economics and Social Affairs.
    2. Suranjana Nabar-Bhaduri, 2009. "What Lies Beneath: A Case For Disaggregated Analysis In Evaluating Stuctural Policy Shifts," Working Paper Series, Department of Economics, University of Utah 2009_12, University of Utah, Department of Economics.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:epa:cepawp:1998-05. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bridget Fisher).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.