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Trade Policy During the Transition: Lessons from the 1990s

  • Paul Hare

This paper draws out some key lessons from the trade policy experience of transition economies during the 1990s. It does so by examining what trade policy was actually pursued, covering liberalisation of trade in goods and services, liberalisation of the capital account and the approach towards FDI, and exchange rate policy. At the same time, limitations on trade imposed by trade partners (e.g. EU trade barriers covering so called "sensitive products") are reviewed. Based on the policies pursued, the effects on the direction, composition and scale of trade by the transition economies are then summarised. The paper concludes by discussing the form of an "ideal' trade policy under transition conditions, and elicits lessons from the 1990s experience of trade policy in the region. Copyright Blackwell Publishers Ltd 2001.

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Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 24 (2001)
Issue (Month): 4 (04)
Pages: 482-512

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Handle: RePEc:bla:worlde:v:24:y:2001:i:4:p:482-512
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  1. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR;CES;MSH, vol. 12(24), pages 125-176, 04.
  2. Aturupane, Chonira & Djankov, Simeon & Hoekman, Bernard, 1997. "Determinants of intra-industry trade between East and West Europe," Policy Research Working Paper Series 1850, The World Bank.
  3. Michalopoulos, Constantine & Tarr, David, 1997. "The economics of customs unions in the Commonwealth of Independent States," Policy Research Working Paper Series 1786, The World Bank.
  4. Michalopoulos, Constantine, 1999. "The integration of transition economies into the world trading system," Policy Research Working Paper Series 2182, The World Bank.
  5. Damien NEVEN, 1994. "Trade Liberalisation with Eastern Nations. How Sensitive ?," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9407, Université de Lausanne, Faculté des HEC, DEEP.
  6. Dariusz Rosati, 1996. "Exchange rate policies during transition from plan to market," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 159-184, 05.
  7. Hare, Paul G & Hughes, Gordon, 1992. "Industrial Policy and Restructuring in Eastern Europe," CEPR Discussion Papers 653, C.E.P.R. Discussion Papers.
  8. Hughes, Gordon A & Hare, Paul, 1994. "The International Competitiveness of Industries in Bulgaria, Czechoslovakia, Hungary, and Poland," Oxford Economic Papers, Oxford University Press, vol. 46(2), pages 200-221, April.
  9. Drabek, Zdenek & Brada, Josef C., 1998. "Exchange Rate Regimes and the Stability of Trade Policy in Transition Economies," Journal of Comparative Economics, Elsevier, vol. 26(4), pages 642-668, December.
  10. Drabek, Zdenek & Brada, Josef C., 1998. "Exchange rate regimes and the stability of trade policy in transition economies," WTO Staff Working Papers ERAD-98-07, World Trade Organization (WTO), Economic Research and Statistics Division.
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