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Impact of Selectivity and Neutrality of trade Policy Incentives on Industrialization of Developing Countries; Implications for NAMA Negotiations

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Author Info
Shafaeddin, Mehdi

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Abstract

Abstract This author sheds some light on the theoretical arguments on the use of selectivity and uniformity of trade policy in trade and industrialization for targeting industries and firms and provides a brief historical review of practices of developed countries and East Asian countries with particular reference to Republic of Korea. Furthermore, he provides empirical evidence on the impact of non-neutral tariff rates for a sample of 32 developing countries for the period 1980-87 - before important changes towards neutrality of tariff structure of developing countries took place. Further, he outlines preconditions for implementing “selective” (targeted) trade and industrial policies. Yet more, he discusses the implications of the findings of the study for the dynamism of the tariff structure of developing countries, thus for negotiation for NAMA (Non-agricultural market access) in WTO and outlines necessary changes in WTO rule to make them conducive to the interest of developing countries.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15037.

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Date of creation: 10 Mar 2009
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Handle: RePEc:pra:mprapa:15037

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Related research
Keywords: Trade; trade policy; industrialization; WTO; NAMA negotiation; development;

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Find related papers by JEL classification:
B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F51 - International Economics - - International Relations and International Political Economy - - - International Conflicts; Negotiations; Sanctions
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
F00 - International Economics - - General - - - General
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
F53 - International Economics - - International Relations and International Political Economy - - - International Agreements and Observance; International Organizations
O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General

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  1. Gueorgui Kambourov & Iourii Manovskii, 2009. "Occupational Specificity Of Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, 02. [Downloadable!] (restricted)
    Other versions:
  2. S.M. Shafaeddin, 2005. "Trade Liberalization And Economic Reform In Developing Countries: Structural Change Or De-Industrialization?," UNCTAD Discussion Papers 179, United Nations Conference on Trade and Development. [Downloadable!]
  3. Shafaeddin, Mehdi, 2008. "The political Economy of WTO with special reference to NAMA Negotiations," MPRA Paper 10894, University Library of Munich, Germany. [Downloadable!]
  4. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-26, October. [Downloadable!] (restricted)
    Other versions:
  5. Yilmaz Akyuz, 2005. "The WTO Negotiations on Industrial Tariffs: What is at Stake for Developing Countries?," Working Papers 2005/8, Turkish Economic Association. [Downloadable!]
  6. Balassa, Bela, 1975. "Reforming the system of incentives in developing countries," World Development, Elsevier, vol. 3(6), pages 365-382, June. [Downloadable!] (restricted)
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  11. Sanjaya LALL, 2004. "Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness," G-24 Discussion Papers 28, United Nations Conference on Trade and Development. [Downloadable!]
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  12. Shafaeddin, Mehdi, 2006. "Is The Industrial Policy Relevant In The 21st Century?," MPRA Paper 6643, University Library of Munich, Germany. [Downloadable!]
  13. Bell, Martin & Ross-Larson, Bruce & Westphal, Larry E., 1984. "Assessing the performance of infant industries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 101-128. [Downloadable!] (restricted)
  14. Yılmaz AKYÜZ, 2005. "The wto negotiations on industrial tariffs: What is at stake for developing countries?," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 20(232), pages 5-35.
  15. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-55, December. [Downloadable!] (restricted)
  16. Henry J. Bruton, 1998. "A Reconsideration of Import Substitution," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 903-936, June. [Downloadable!] (restricted)
  17. Bruton, H.J., 1998. "A Reconsideration of Import Substitution," Center for Development Economics 156, Department of Economics, Williams College.
  18. Lee, Jaimin, 1995. "Comparative advantage in manufacturing as a determinant of industrialization: The Korean case," World Development, Elsevier, vol. 23(7), pages 1195-1214, July. [Downloadable!] (restricted)
  19. Streeten, Paul, 1987. "Structural adjustment: A survey of the issues and options," World Development, Elsevier, vol. 15(12), pages 1469-1482, December. [Downloadable!] (restricted)
  20. Baldwin, Robert E, 1969. "The Case against Infant-Industry Tariff Protection," Journal of Political Economy, University of Chicago Press, vol. 77(3), pages 295-305, May/June. [Downloadable!] (restricted)
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  22. Balassa, Bela, 1989. "Tariff policy and taxation in developing countries," Policy Research Working Paper Series 281, The World Bank. [Downloadable!]
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