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Free trade agreements and the credibility of trade reforms

Author

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  • David M. Gould

Abstract

David M. Gould argues that free trade agreements can help developing countries establish the credibility essential to successful trade reform. Credibility, he explains, is necessary if trade reform policies are to entice investment into the economic sectors where the liberalizing country has its greatest comparative advantage. As Gould explains, a free trade agreement enhances the credibility of trade reform policies by providing evidence of a government's long-term commitment to free trade and by discouraging protectionist policies in foreign markets. Gould concludes with an outlook for U.S.-Mexican free trade.

Suggested Citation

  • David M. Gould, 1992. "Free trade agreements and the credibility of trade reforms," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q I, pages 17-27.
  • Handle: RePEc:fip:fedder:y:1992:i:qi:p:17-27
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    Citations

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    Cited by:

    1. Mohammad Amin, 2004. "Time Inconsistency of Trade Policy and Multilateralism," International Trade 0402002, EconWPA.
    2. R. I. Udegbunam, 2002. "Openness, Stock Market Development, and Industrial Growth in Nigeria," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(1), pages 69-92.
    3. Raquel Fernandez, 1997. "Returns to Regionalism: An Evaluation of Non-Traditional Gains from RTAs," NBER Working Papers 5970, National Bureau of Economic Research, Inc.
    4. David M. Gould, 1995. "Mexico's crisis: looking back to assess the future," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-12.

    More about this item

    Keywords

    Free trade ; International trade;

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