This paper analyzes the relationship between trade policy and economic performance. The paper is divided in two fundamental parts. The first one uses a cross country data set to investigate the relationship between trade policy and productivity growth. It is found that countries that are more open to the rest of the world have experienced faster growth in total factor productivity than countries with high trade barriers. In the second part the recent Latin American experiences with trade liberalization reforms are investigated. It is shown that in the last few years the Latin American countries have gone from having one of the most distorted external sectors, to having very low degrees of protectionism. The extent of the liberalization efforts is documented and the effect on productivity and exports is investigated.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
4511.
Length: Date of creation: Oct 1993 Date of revision: Publication status: published as Edwards, Sebastian. "Trade Policy, Growth, And Income Distribution," American Economic Review, 1997, v87(2,May), 205-210. Reform, Recovery, and Growth: Latin America and the Middle East, Rudiger Dornbusch and Sebastian Edwards, eds., (Chicago: University of Chicago Press: 1995), pp. 13-49 Handle: RePEc:nbr:nberwo:4511
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Find related papers by JEL classification: F1 - International Economics - - Trade F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Dixit, Avinash, 1985.
"Tax policy in open economies,"
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 6, pages 313-374
Elsevier.
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