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Trade Liberalisation and the Balance of Payments in Selected Developing Countries

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  • Amelia Santos-Paulino

Abstract

This paper analyses the impact of the reduction of tariff and non-tariff barriers on the trade balance and the current account of the balance of payments of 22 selected developing countries from Africa, Latin America, East Asia, and South Asia. The study presents estimates of dynamic panel data models and time-series/cross-section models. The main findings are that trade liberalisation has worsened the balance of trade and the balance of payments, because imports have increased more rapidly than exports. However, the impact of liberalisation and other variables varies according to region and the nature of the trade policy regime.

Suggested Citation

  • Amelia Santos-Paulino, 2002. "Trade Liberalisation and the Balance of Payments in Selected Developing Countries," Studies in Economics 0202, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:0202
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    File URL: https://www.kent.ac.uk/economics/repec/0202.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    trade liberalisation; balance of payments; dynamic panel data; time series/cross section; developing countries;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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