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Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence

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  • Dani Rodrik

Abstract

This paper reviews recent theory and evidence on trade and industrial policy reform in developing countries. First, the theoretical and empirical basis of the rationales for policy reform are discussed. Next, two sources of heterodoxy are identified and evaluated: (a) the East Asian experience with interventionist industrial policies; (b) recent models of imperfect competition. The survey then turns on strategic issues in reform, and discusses the theory of piecemeal reform, tax or tariff uniformity, credibility, political economy, and interactions with stabilization policy. The penultimate section reviews the available evidence on the consequences of recent policy reform.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4417.

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Date of creation: Aug 1993
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Publication status: published as Rodrik, Rani, 1995. "Trade and industrial policy reform," Handbook of Development Economics, in: Hollis Chenery†& T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 45, pages 2925-2982 Elsevier.
Handle: RePEc:nbr:nberwo:4417

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Cited by:
  1. Thomas J. Holmes & James A. Schmitz, Jr., 1994. "Resistance to technology and trade between areas," Staff Report 184, Federal Reserve Bank of Minneapolis.
  2. Abo-Zaid Salem M, 2011. "The Trade-Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004," Review of Middle East Economics and Finance, De Gruyter, vol. 6(3), pages 63-93, February.
  3. Haider A. Khan, 2002. "Digital Development: Challenges and Prospects," CIRJE F-Series CIRJE-F-152, CIRJE, Faculty of Economics, University of Tokyo.
  4. Jeffrey A. Frankel & David Romer & Teresa Cyrus, 1995. "Trade and growth in East Asian countries: cause and effect?," Pacific Basin Working Paper Series 95-03, Federal Reserve Bank of San Francisco.
  5. Bosworth, B. & Collins, S.M. & Chen, Y.C., 1995. "Accounting for Differences in Economic Growth," Papers 115, Brookings Institution - Working Papers.
  6. Mohieddine Rahmouni (GREThA, CNRS, UMR 5113) & Murat Yildizoglu (GREQAM, CNRS, UMR 6579), 2011. "Motivations and determinants of technological innovations. A theoretical survey (In French)," Cahiers du GREThA 2011-10, Groupe de Recherche en Economie Théorique et Appliquée.
  7. Brousseau, Eric & Garrouste, Pierre & Raynaud, Emmanuel, 2011. "Institutional changes: Alternative theories and consequences for institutional design," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1), pages 3-19.
  8. Haider A. Khan, 2003. "Digital Transitions: The POLIS Theory and The NIEs," CIRJE F-Series CIRJE-F-231, CIRJE, Faculty of Economics, University of Tokyo.
  9. Alberto Chong & L. Zanforlin, 2000. "Technological Adaptation, Trade, and Growth," IMF Working Papers 00/161, International Monetary Fund.
  10. Judith Dean, 1995. "From protectionism to free trade fever? Recent reforms in developing countries," Open Economies Review, Springer, vol. 6(4), pages 369-385, October.
  11. McCarthy, F. Desmond & Neary, J. Peter & Zanalda, Giovanni & DEC, 1994. "Measuring the effect of external shocks and the policy response to them : empirical methodology applied to the Philippines," Policy Research Working Paper Series 1271, The World Bank.
  12. Haider Ali Khan, 2004. "Towards A Field Theory of Innovating Multinational Firms in the Digital Economy: Creative Capital in a POLIS," CIRJE F-Series CIRJE-F-259, CIRJE, Faculty of Economics, University of Tokyo.
  13. Onur Koska, 2005. "Financial Liberalization Era in Turkey: Critique on Decree No.32," Macroeconomics 0506016, EconWPA.
  14. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
  15. César Calderón & Alberto Chong & Luisa Zanforlin, 2001. "On Non-Linearities Between Exports Of Manufactures And Economic Growth," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 279-311, November.
  16. Diaz-Bautista, Alejandro, 2002. "The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence," ERSA conference papers ersa02p102, European Regional Science Association.
  17. Independent Evaluation Group, 2006. "Assessing World Bank Support for Trade, 1987-2004 : An IEG Evaluation," World Bank Publications, The World Bank, number 6966, October.

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