IDEAS home Printed from https://ideas.repec.org/a/kap/openec/v1y1990i2p111-145.html
   My bibliography  Save this article

The political economy of trade liberalization in developing countries

Author

Listed:
  • Mustapha Nabli

Abstract

The paper addresses the issue of trade liberalization in developing countries from a political economy perspective using the theory of collective action. The role of collective action and interest group behavior is analysed critically both with respect to the initiation of attemps at liberalization and its outcome in terms of success or failure. A probit model is then used to test empirically the various hypotheses as to the determinants of likelihood of success of liberalization attempts. A sample of 51 liberalization episodes relating to 24 countries and spanning the period 1950–80 is used. Five factors are found to be critical in the process of liberalization: the strength of exporters groups as represented by the diversification and importance of manufactures and traditional exports, the strength of import-competing sector's opposition as measured by the share of manufacturing in GDP, the time elapsed since the beginning of import substitution, the size of country and the leadership committment and role. Copyright Kluwer Academic Publishers 1990

Suggested Citation

  • Mustapha Nabli, 1990. "The political economy of trade liberalization in developing countries," Open Economies Review, Springer, vol. 1(2), pages 111-145, June.
    • Handle: RePEc:kap:openec:v:1:y:1990:i:2:p:111-145
    DOI: 10.1007/BF01886162
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF01886162
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF01886162?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard E. Caves, 1976. "Economic Models of Political Choice: Canada's Tariff Structure," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 278-300, May.
    2. Kuran, Timur, 1988. "The tenacious past: Theories of personal and collective conservatism," Journal of Economic Behavior & Organization, Elsevier, vol. 10(2), pages 143-171, September.
    3. Baldwin, Robert E., 1984. "Trade policies in developed countries," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 12, pages 571-619, Elsevier.
    4. Anne O. Krueger, 1988. "The Political Economy of Controls: American Sugar," NBER Working Papers 2504, National Bureau of Economic Research, Inc.
    5. Nelson, Joan M., 1984. "The political economy of stabilization: Commitment, capacity, and public response," World Development, Elsevier, vol. 12(10), pages 983-1006, October.
    6. Dee, Philippa S., 1984. "Economic policy making and the role of special interest groups: Some evidence for South Korea," Kiel Working Papers 217, Kiel Institute for the World Economy (IfW Kiel).
    7. Berg, Andrew & Sachs, Jeffrey, 1988. "The debt crisis structural explanations of country performance," Journal of Development Economics, Elsevier, vol. 29(3), pages 271-306, November.
    8. Pincus, J J, 1975. "Pressure Groups and the Pattern of Tariffs," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 757-778, August.
    9. Albert O. Hirschman, 1968. "The Political Economy of Import-Substituting Industrialization in Latin America," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(1), pages 1-32.
    10. Jeffrey D. Sachs, 1987. "Trade and Exchange Rate Policies in Growth-Oriented Adjustment Programs," NBER Working Papers 2226, National Bureau of Economic Research, Inc.
    11. Sebastian Edwards, 1989. "Openness, Outward Orientation, Trade Liberalization and Economic Performance in Developing Countries," NBER Working Papers 2908, National Bureau of Economic Research, Inc.
    12. Quibria, M G, 1989. "Neoclassical Political Economy: An Application to Trade Policies," Journal of Economic Surveys, Wiley Blackwell, vol. 3(2), pages 107-136.
    13. Lal, Deepak, 1987. "The Political Economy of Economic Liberalization," The World Bank Economic Review, World Bank, vol. 1(2), pages 273-299, January.
    14. McKinnon, Ronald I., 1982. "The order of economic liberalization: Lessons from Chile and Argentina," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 17(1), pages 159-186, January.
    15. Anne O. Krueger, 1978. "Foreign Trade Regimes and Economic Development: Liberalization Attempts and Consequences," NBER Books, National Bureau of Economic Research, Inc, number krue78-1, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mario Tello Pacheco, 2022. "The Political Economy of Trade Barriers in Peru," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 41(74), pages 71-107, July.
    2. Mehmet Huseyin Bilgin, 2019. "Trade Liberalization: Is It Desirable for All Developing Economies?: A Literature Review," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 199-204, December.
    3. Liu, Meng-chun, 2002. "Determinants of Taiwan's Trade Liberalization: The Case of a Newly Industrialized Country," World Development, Elsevier, vol. 30(6), pages 975-989, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roubini, Nouriel & Sala-i-Martin, Xavier, 1992. "Financial repression and economic growth," Journal of Development Economics, Elsevier, vol. 39(1), pages 5-30, July.
    2. Sebastian Edwards, 1994. "Trade and Industrial Policy Reform in Latin America," NBER Working Papers 4772, National Bureau of Economic Research, Inc.
    3. Oscar Bajo & Angel Torres, 1991. "Los determinantes de la protección en la industria manufacturera española," Investigaciones Economicas, Fundación SEPI, vol. 15(2), pages 457-480, May.
    4. Tharakan, P.K.M. & Greenaway, David & Kerstens, Birgit, 2006. "Anti-dumping and excess injury margins in the European Union: A counterfactual analysis," European Journal of Political Economy, Elsevier, vol. 22(3), pages 653-674, September.
    5. Jae Chung, 1992. "Rivalry for export promotions," Open Economies Review, Springer, vol. 3(1), pages 23-35, February.
    6. Elias Dinopoulos & Mordechai E. Kreinin, 1991. "The US VER on Machine Tools: Causes and Effects," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 113-134, National Bureau of Economic Research, Inc.
    7. Bin, Sheng, 2000. "The Political Economy of Trade Policy in China," Working Papers 10/2000, Copenhagen Business School, Department of Management, Politics & Philosophy.
    8. Panagariya, Arvind & Rodrik, Dani, 1993. "Political-Economy Arguments for a Uniform Tariff," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(3), pages 685-703, August.
    9. Robert Pahre, 1998. "Reactions and Reciprocity," Journal of Conflict Resolution, Peace Science Society (International), vol. 42(4), pages 467-492, August.
    10. Robert C. Feenstra & Jagdish N. Bhagwati, 1982. "Tariff Seeking and the Efficient Tariff," NBER Chapters, in: Import Competition and Response, pages 245-262, National Bureau of Economic Research, Inc.
    11. Mirabelle Muûls & Dimitra Petropoulou, 2013. "A swing state theory of trade protection in the Electoral College," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 705-724, May.
    12. Hiemenz U. & Langhammer, Rolf J., 1986. "Efficiency pre-conditions for successful integration of developing countries into the world economy," ILO Working Papers 992485213402676, International Labour Organization.
    13. Renelt, David, 1991. "Economic growth : a review of the theoretical and empirical literature," Policy Research Working Paper Series 678, The World Bank.
    14. Corbo, Vittorio & Fischer, Stanley, 1995. "Structural adjustment, stabilization and policy reform: Domestic and international finance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 44, pages 2845-2924, Elsevier.
    15. Donald Feaver & Kenneth Wilson, 1998. "Unlocking Australia's Contingent Protection Black Box," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 62-73, March.
    16. Siebert, Horst, 1989. "Güterwirtschaftliche Anpassungsprozesse zur Lösung der Verschuldungsfrage," Kiel Working Papers 349, Kiel Institute for the World Economy (IfW Kiel).
    17. Dimitrios Paparas & Christian Richter, 2015. "Fiscal policy and economic growth: Empirical evidence from the European Union," Working Papers 2015.06, International Network for Economic Research - INFER.
    18. Sebastian Edwards, 1989. "Structural Adjustment Policies in Highly Indebted Countries," NBER Chapters, in: Developing Country Debt and the World Economy, pages 249-262, National Bureau of Economic Research, Inc.
    19. Chen, Baizhu & Feng, Yi, 2001. "Openness and trade policy in China: an industrial analysis," China Economic Review, Elsevier, vol. 11(4), pages 323-341.
    20. Havrylyshyn, Oleh & Tarr, David, 1991. "Trade liberalization and the transition to a market economy," Policy Research Working Paper Series 700, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:1:y:1990:i:2:p:111-145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.