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The Limits of Trade Policy Reform in Developing Countries

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  • Dani Rodrik

Abstract

Trade reform is now raising some new issues. This paper deals with three sets of questions: First, how can trade reform be sustained? Can governments convince business, labor, or consumers that trade reform will be lasting, so as to forestall possible adverse reactions that would jeopardize the sustainability of the reform? Second, what role should trade reform play when it is implemented in the context of macroeconomic instability? Are there potential conflicts between the standard desiderata for trade reform and the requirements of macro stability? Finally, should we be worried about the consequences of trade reform in the imperfectly competitive market environments that characterize the developing economies?

Suggested Citation

  • Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
    • Handle: RePEc:aea:jecper:v:6:y:1992:i:1:p:87-105
    Note: DOI: 10.1257/jep.6.1.87
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.6.1.87
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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