Working Paper 60 - Trade Liberalization and Growth: Policy Options for African Countries in a Global Economy
African countries have not embraced trade liberalization in the manner thatother developing regions have. Protectionist measures have taken various forms,including tariffs, quantitative restrictions, exchange controls and downrightimport bans. A significant number of researchers have attributed, in part, thepoor performance of African economies to the protectionist trade practices.Economists have made sustained efforts at cataloguing the welfare costs oftrade barriers and emphasizing the gains from trade in order to advance policiesto reverse protectionist practices. In fact new growth theorists contend thattraditional analysis tended to consistently underestimate the welfare costs ofprotectionism, because they ignored the effects of the introduction of new goodson technological progress, domestic production and growth associated withfree trade. In this paper we conclude that while opening an economy to trademay not provide the desired quick fix, the removal or relaxation of quantitativeimport and export restrictions and lowering of tariffs would result in increasedexports and growth. The dawn of a global economy ushered in by universaltrade liberalization, therefore, need not spell catastrophe for African economiesas is widely feared.“In a major report in the late 1950’s T.K. Whittaker wrote ‘Sooner or later,protectionism will have to go, and the challenge of free trade accepted, if Irelandwishes to keep pace with the rest of Europe’ ”Former US President Bill Clinton, in his Remarks to the People of Dundalk,Ireland, Courthouse Square, Dundalk, 12 December 2000 (http://www.whitehouse.gov/WH/new/december2000/speech12_12c.html)
|Date of creation:||10 Mar 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+216) 71 10 39 00
Fax: (225) 21.77.53
Web page: http://www.afdb.org/en/knowledge/publications/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ng, Francis & Yeats, Alexander, 1997.
"Open economies work better! did Africa's protectionist policies cause its marginalization in world trade?,"
Elsevier, vol. 25(6), pages 889-904, June.
- Ng, Francis & Yeats, Alexander, 1996. "Open economies work better! Did Africa's protectionist policies cause its marginalization in world trade?," Policy Research Working Paper Series 1636, The World Bank.
- Harrison, Ann, 1991.
"Openness and growth : a time series, cross-country analysis for developing countries,"
Policy Research Working Paper Series
809, The World Bank.
- Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
- Ann Harrison, 1995. "Openness and Growth: A Time-Series, Cross-Country Analysis for Developing Countries," NBER Working Papers 5221, National Bureau of Economic Research, Inc.
- Luis A. Rivera-Batiz & Paul M. Romer, 1990.
"Economic Integration and Endogenous Growth,"
NBER Working Papers
3528, National Bureau of Economic Research, Inc.
- Ghura, Dhaneshwar & Grennes, Thomas J., 1993. "The real exchange rate and macroeconomic performance in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 42(1), pages 155-174, October.
When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:194. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adeleke Oluwole Salami)
If references are entirely missing, you can add them using this form.