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Openness, outward orientation, trade liberalization, and economic performance in developing countries


  • Edwards, Sebastian


This paper provides a critical review of the existing empirical literature that deals with the relationship between trade orientation and economic performance. Using a model that avoids the shortcomings of most current measures of trade orientation, the author finds strong support for the hypothesis that, other things being equal, countries with a less distorted external sector grow faster than countries with a more distorted external sector.

Suggested Citation

  • Edwards, Sebastian, 1989. "Openness, outward orientation, trade liberalization, and economic performance in developing countries," Policy Research Working Paper Series 191, The World Bank.
  • Handle: RePEc:wbk:wbrwps:191

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    References listed on IDEAS

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    2. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
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    12. Tobey, James A, 1990. "The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test," Kyklos, Wiley Blackwell, vol. 43(2), pages 191-209.
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    Cited by:

    1. Anca Maria GHERMAN & George ȘTEFAN, 2015. "Exports – trends and impacts on Romania’s economic growth process," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(603), S), pages 43-54, Summer.
    2. Levine, Ross & Renelt, David, 1991. "Cross-country studies of growth and policy : methodological, conceptual, and statistical problems," Policy Research Working Paper Series 608, The World Bank.
    3. repec:agr:journl:v:2(602):y:2015:i:2(602):p:43-54 is not listed on IDEAS
    4. Mustapha Nabli, 1990. "The political economy of trade liberalization in developing countries," Open Economies Review, Springer, vol. 1(2), pages 111-145, June.
    5. Timothy J. Kehoe & Kim J. Ruhl, 2010. "Why Have Economic Reforms in Mexico Not Generated Growth?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 1005-1027, December.
    6. Ghali, Khalifa H. & Trabelsi, Hédi, 2006. "Capital Ownership And Its Impact On International Trade And Economic Growth: The Tunisian Experience," MPRA Paper 78974, University Library of Munich, Germany.
    7. Alireza Rahimi-Boroujerdi, 2005. "An Empirical & Theoretical Study about the Effects of Tariff on Economic Growth," Iranian Economic Review, Economics faculty of Tehran university, vol. 10(1), pages 105-133, spring.
    8. Raiser, Martin, 1993. "The no-exit economy: Soft budget constraints and the causes of success or failure of economic reforms in developing countries," Kiel Working Papers 581, Kiel Institute for the World Economy (IfW).
    9. Aitken, Brian J., 1992. "Measuring trade policy intervention : a cross-country index of relative price dispersion," Policy Research Working Paper Series 838, The World Bank.
    10. Johnston, Paul V., 1992. "Trade Dependency Index Tables for Total, Merchandise and Agricultural Trade, 1960-88," Statistical Bulletin 154764, United States Department of Agriculture, Economic Research Service.
    11. Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992. "In search of scale effects in trade and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 377-409, December.
    12. Tybout, James R., 1991. "Researching the trade - productivity link : new directions," Policy Research Working Paper Series 638, The World Bank.
    13. Xavier Sala-i-Martin, 1990. "Lecture Notes on Economic Growth(II): Five Prototype Models of Endogenous Growth," NBER Working Papers 3564, National Bureau of Economic Research, Inc.
    14. 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.
    15. Ibarra, Luis Alberto, 1995. "Credibility of trade policy reform and investment: the Mexican experience," Journal of Development Economics, Elsevier, vol. 47(1), pages 39-60, June.
    16. Mandeng, Ousmène Jacques, 1991. "Competitividad internacional y especialización," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    17. Roubini, Nouriel & Sala-i-Martin, Xavier, 1992. "Financial repression and economic growth," Journal of Development Economics, Elsevier, vol. 39(1), pages 5-30, July.
    18. Farhad Rassekh, 1993. "International trade and the relative dispersion of industrial wages and production techniques in 14 OECD countries, 1970–1985," Open Economies Review, Springer, vol. 4(3), pages 325-344, September.
    19. I. Goldin & D. Evans, 1991. "Trade Reform and Structural Adjustment," South African Journal of Economics, Economic Society of South Africa, vol. 59(3), pages 141-151, September.
    20. Agarwal, Jamuna Prasad & Langhammer, Rolf J. & Lücke, Matthias & Nunnenkamp, Peter, 1995. "Export expansion and diversification in Central and Eastern Europe: what can be learnt from East and Southeast Asia?," Kiel Discussion Papers 261, Kiel Institute for the World Economy (IfW).
    21. Havrylyshyn, Oleh & Tarr, David, 1991. "Trade liberalization and the transition to a market economy," Policy Research Working Paper Series 700, The World Bank.
    22. Feal-Zubimendi, Soledad, 2007. "Crecimiento Económico y Apertura Comercial: Análisis de la Influencia de los Canales
      [Trade Openness and Economic Growth: Analysis of the Channels of Influence]
      ," MPRA Paper 63343, University Library of Munich, Germany.
    23. Michele Bullock & Stephen Grenville & Geoffrey Heenan, 1993. "The Exchange Rate and the Current Account," RBA Annual Conference Volume,in: Adrian Blundell-Wignall (ed.), The Exchange Rate, International Trade and the Balance of Payments Reserve Bank of Australia.
    24. Sengupta, Jati K. & Okamura, Kumiko, 1996. "Learning by doing and openness in Japanese growth: A new approach," Japan and the World Economy, Elsevier, vol. 8(1), pages 43-64, March.


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