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Impact of Liberalization, Economic Growth and Trade Policies on Current Accounts of Developing Countries: An Econometric Study

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  • Ashok Parikh

Abstract

The objectives of this paper are to examine the impact of liberalization on trade deficits and current accounts for developing economies. Attempts at liberalization in trade could lead to an increase in imports in the short run and this could cause both trade and current account deficits in countries that adopt rapid liberalization. Liberalization could increase growth rates in the short run and this also could result into higher imports than exports.

Suggested Citation

  • Ashok Parikh, 2002. "Impact of Liberalization, Economic Growth and Trade Policies on Current Accounts of Developing Countries: An Econometric Study," WIDER Working Paper Series DP2002-63, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-63
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    Cited by:

    1. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208.
    2. Rekiso, Zinabu Samaro, 2020. "Trade deficits as development deficits: Case of Ethiopia," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 344-353.
    3. Pacheco-López, Penélope & Thirlwall, Anthony, 2009. "Has Trade Liberalisation in Poor Countries Delivered the Promises Ecpected?," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(08), pages 7-34, primer se.
    4. Jorge Saba Arbache, 2004. "Do Structural Reforms always Succeed?: Lessons from Brazil," WIDER Working Paper Series RP2004-58, World Institute for Development Economic Research (UNU-WIDER).
    5. Penelope Pacheco-López, 2004. "Does The Impact of Trade Liberalisation on Exports, Imports, the Balance of Payments and Growth: the Case of Mexico," Studies in Economics 0401, School of Economics, University of Kent.
    6. Besa Chimbaka, 2024. "Country Trade Openness and Impact on Economic Growth: A Case of Zambia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 1063-1069, July.

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