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The Case for Trade Liberalization in Developing Countries

  • Rudiger Dornbusch

This paper reviews the actual situation of protection in developing countries, and then discusses the prospective gains from liberalization. Three experiences with liberalization, from three different parts of the world, are sketched: Turkey, Korea, and Mexico. Next the paper considers what can go wrong with trade reform. Finally, it focuses on two new directions in trade strategy: service trade liberalization and regional free trade agreements.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.6.1.69
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Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 6 (1992)
Issue (Month): 1 (Winter)
Pages: 69-85

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Handle: RePEc:aea:jecper:v:6:y:1992:i:1:p:69-85
Note: DOI: 10.1257/jep.6.1.69
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  1. Barry Eichengreen, 1991. "Historical Research on International Lending and Debt," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 149-169, Spring.
  2. John Whalley, 1989. "Recent Trade Liberalization in the Developing World: What is Behind It, and Where is it Headed?," NBER Working Papers 3057, National Bureau of Economic Research, Inc.
  3. Balassa, Bela, 1989. "Outward orientation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 31, pages 1645-1689 Elsevier.
  4. Pack, Howard, 1988. "Industrialization and trade," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 9, pages 333-380 Elsevier.
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