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Initial conditions and the outcome of economic reform

  • Kaltani, Linda
  • Loayza, Norman V.

This paper studies how initial conditions affect the outcome of reform using the case of trade liberalization as an example. The paper illustrates empirically and theoretically the seemingly paradoxical case of larger impact of reform when initial conditions are poorer.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4T84JXS-2/2/bb25863caa6f77d81470495f2e1ae711
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 3 (December)
Pages: 230-233

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Handle: RePEc:eee:ecolet:v:101:y:2008:i:3:p:230-233
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Calderon, Cesar & Loayza, Norman & Schmidt-Hebbel, Klaus, 2005. "Does openness imply greater exposure ?," Policy Research Working Paper Series 3733, The World Bank.
  2. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
  3. Rama, Martin, 2003. "Globalization and workers in developing countries," Policy Research Working Paper Series 2958, The World Bank.
  4. Aizenman, Joshua, 2005. "Financial Liberalizations in Latin-America in the 1990s: A Reassessment," Santa Cruz Department of Economics, Working Paper Series qt8g77c9dh, Department of Economics, UC Santa Cruz.
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