The Case for Trade Liberalization in Developing Countries

Rudiger W. Dornbusch

257 citations0/0 files storedThe Journal of Economic Perspectives

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Global trade and economics World Trade Organization Law Economic, financial, and policy analysis

Abstract

This paper reviews the actual situation of protection in developing countries, and then discusses the prospective gains from liberalization. Three experiences with liberalization, from three different parts of the world, are sketched: Turkey, Korea, and Mexico. Next the paper considers what can go wrong with trade reform. Finally, it focuses on two new directions in trade strategy: service trade liberalization and regional free trade agreements.

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References

2003The Theory of Economic Development 1992Trade orientation, distortions and growth in developing countries 1990Trade policy and market structure 1978Foreign Trade Regimes and Economic Development: Liberalization Attempts and Consequences 1979Anatomy and Consequences of Exchange Control Regimes 1990Modern Business Cycle Theory 1979Liberalization Attempts and Consequences 1985Pioneers in Development

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2023Geoeconomic Fragmentation and the Future of Multilateralism 1996Trade, Technology, and International Competitiveness 2004Liberalization, corporate governance and the performance of privatized firms in developing countries 1991Historical Research on International Lending and Debt 2010CSR, Sustainability and the Meaning of Global Reporting for Latin American Corporations 2020Trade and growth in developing countries: the role of export composition, import composition and export diversification

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