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Internal and external liberalisation for faster growth

  • Giersch, Herbert
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    This paper is an attempt to bring the two sides together. It will demonstrate, on the, one hand, - that internal and external liberalisation of trade in goods and services does substantially raise potential output and its growth path and - that it, therefore, pays to anticipate these gains in conceiving and conducting macro-economic policies. On the other hand, it will be argued that a macro-economic policy that is trade oriented and forward looking in this sense would allow trade negotiators and deregulators to deemphasise the direct losses of output and employment expected from removing restrictions and to anticipate a pull of demand that will facilitate the transfer of resources to alternative uses.

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    File URL: http://econstor.eu/bitstream/10419/46808/1/255238983.pdf
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    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 275.

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    Date of creation: 1986
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    Handle: RePEc:kie:kieliw:275
    Contact details of provider: Postal: Kiellinie 66, D-24105 Kiel
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    1. Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
    2. Donges, Juergen B., 1986. "Whither international trade policies? Worries about continuing protectionism," Kiel Discussion Papers 125, Kiel Institute for the World Economy (IfW).
    3. Heitger, Bernhard, 1986. "Import protection and export performance: Their impact on economic growth," Kiel Working Papers 260, Kiel Institute for the World Economy.
    4. Anne O. Krueger, 1983. "Trade and Employment in Developing Countries, Volume 3: Synthesis and Conclusions," NBER Books, National Bureau of Economic Research, Inc, number krue83-1, April.
    5. Lal, Deepak & Rajapatirana, Sarath, 1987. "Foreign Trade Regimes and Economic Growth in Developing Countries," World Bank Research Observer, World Bank Group, vol. 2(2), pages 189-217, July.
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