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Trade Policy during the Transition. Lessons from the 1990s


  • Paul G. Hare


This presentation will draw out lessons from the trade policy experience of transition economies during the 1990s. It will do 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') will be reviewed. Based on the policies pursued, the effect on the direction, composition and scale of trade by the transition economies is then summarised. The paper then 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.

Suggested Citation

  • Paul G. Hare, 2000. "Trade Policy during the Transition. Lessons from the 1990s," CERT Discussion Papers 0006, Centre for Economic Reform and Transformation, Heriot Watt University.
  • Handle: RePEc:hwe:certdp:0006

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    References listed on IDEAS

    1. 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.
    2. Ricahrd 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, April.
    3. 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.
    4. 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, May.
    5. 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.
    6. Tarmo Haavisto (ed.), 1997. "The Transition to a Market Economy," Books, Edward Elgar Publishing, number 917.
    7. 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.
    8. Hughes, Gordon & Hare, Paul G, 1992. "Industrial Policy and Restructuring in Eastern Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 82-104, Spring.
    9. 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.
    10. Michalopoulos, Constantine, 1999. "The integration of transition economies into the world trading system," Policy Research Working Paper Series 2182, The World Bank.
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    Cited by:

    1. Edgar Cudmore & John Whalley, 2005. "Border Delays and Trade Liberalization," NBER Chapters,in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 391-406 National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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