Openness, Outward Orientation, Trade Liberalization and Economic Performance in Developing Countries
Title | Openness, Outward Orientation, Trade Liberalization and Economic Performance in Developing Countries PDF eBook |
Author | Sebastian Edwards |
Publisher | World Bank Publications |
Pages | 66 |
Release | 1989 |
Genre | Apertura economica - Paises en desarrollo |
ISBN |
Openness, Outward Orientation, Trade Liberalization and Economic Performance in Developing Countries
Title | Openness, Outward Orientation, Trade Liberalization and Economic Performance in Developing Countries PDF eBook |
Author | Sebastian Edwards |
Publisher | |
Pages | 60 |
Release | 1989 |
Genre | Developing countries |
ISBN |
This paper deals with the role of trade regimes in determining economic performance and growth in the developing countries. The policy and empirical literatures on trade orientation and economic growth are critically reviewed; it is argued that a key limitation of these works has been the inability to create measures of trade orientation that are: (i) objective; (ii) continuous and (iii) comparable across countries. A growth model that relates trade orientation to the ability to absorb technological progress from the rest of the world is developed for the case of a small country. The model is tested using a new index of trade orientation that is free from the limitations described above. The results obtained using a cross country data set provide strong support to the hypothesis that, with other things given, countries with a less distorted external sector grow faster than those countries with a more distorted external sector. The new theories of economic growth are also discussed, and their usefulness for analyzing the relation between trade orientation and growth in the developing countries is assessed.
Managing Openness
Title | Managing Openness PDF eBook |
Author | Mona Haddad |
Publisher | World Bank Publications |
Pages | 352 |
Release | 2011 |
Genre | Business & Economics |
ISBN | 0821386336 |
The global financial crisis triggered a broad reassessment of economic integration policies in developed and developing countries worldwide. The crisis-induced collapse in trade was the sharpest ever since World War II, affecting all countries and all product categories. A huge shock to the trading system, combined with severe macroeconomic instability, makes it natural for policymakers to call into question the basic underlying assumptions of trade liberalization and openness. In particular, outward-oriented or export-led growth strategies are being reassessed as openness is increasingly associated with greater volatility. However, it is crucial not to lose sight of the dynamic benefits that openness can offer. Examples include technology transfer, increased competitive pressure that reduces markups and improves efficiency, and economies of scale. The real question is how to manage outward-oriented strategies so as to maximize the benefits of openness while minimizing risks. This book aims to contribute to this important and ongoing policy debate, bringing together recent empirical work on the trade collapse, its causes and consequences, and the broader trade policy agenda in the post-crisis environment. It addresses critical policy issues revolving around the topic of outward-oriented growth strategy, including policy instruments that help manage risks associated with outward-orientation, lessons learned from the crisis for particular countries and regions, and how emerging trade policy issues such as climate change, commodities, global production networking, and migration affect the prospects for recovery and outward-oriented growth.
Opennes, outward orientation, trade liberalization and economic performance in developing countries
Title | Opennes, outward orientation, trade liberalization and economic performance in developing countries PDF eBook |
Author | Sebastian Edwards |
Publisher | |
Pages | 60 |
Release | 1989 |
Genre | |
ISBN |
Measuring Outward Orientation in Developing Countries
Title | Measuring Outward Orientation in Developing Countries PDF eBook |
Author | Lant Pritchett |
Publisher | World Bank Publications |
Pages | 56 |
Release | 1990 |
Genre | Apertura economica - Paises en desarrollo |
ISBN |
Growth Before and After Trade Liberalization
Title | Growth Before and After Trade Liberalization PDF eBook |
Author | Gonzalo Salinas |
Publisher | World Bank Publications |
Pages | 50 |
Release | 2006 |
Genre | Crecimiento economico |
ISBN |
Abstract: The empirical study of the impact of trade liberalization has not convinced the skeptics about the economic gains after trade reforms. Some have even argued that trade reforms have led to economic collapse and to deindustrialization. Using a sample that excludes countries that were subject to major exogenous disruptions, the authors note that post-reform economic growth was 1.2 percentage points higher than before the reforms. This is remarkable considering that pre-reform periods were characterized by highly expansionary state policies and large external borrowing, and the crisis years that preceded trade liberalization in the comparisons are eliminated. Through multivariate fixed effects estimations the authors calculate that annual per capita GDP growth rates increased by up to 2.6 percentage points after the trade reforms, compared to a counterfactual that takes into consideration the evolution of several growth determinants. Moreover, trade liberalization has been followed by an acceleration of growth in investment, exports of goods and services, and manufacturing exports, and as opposed to common belief, outward orientation did not lead to significant deindustrialization and actually seems to have increased export diversification. Growth acceleration occurred irrespective of income per capita level and was quite significant in Sub-Saharan Africa. As expected, small countries benefited most from the reforms.
Managing Openness
Title | Managing Openness PDF eBook |
Author | Mona Haddad |
Publisher | World Bank Publications |
Pages | 327 |
Release | 2011 |
Genre | Business & Economics |
ISBN | 9780821386316 |
The global financial crisis triggered a broad reassessment of economic integration policies in developed and developing countries worldwide. The crisis-induced collapse in trade was the sharpest ever since World War II, affecting all countries and all product categories. A huge shock to the trading system, combined with severe macroeconomic instability, makes it natural for policymakers to call into question the basic underlying assumptions of trade liberalisation and openness. In particular, outward-oriented or export-led growth strategies are being reassessed as openness is increasingly associated with greater volatility. However, it is crucial not to lose sight of the dynamic benefits that openness can offer. Examples include technology transfer, increased competitive pressure that reduces markups and improves efficiency, and economies of scale. The real question is how to manage outward-oriented strategies so as to maximize the benefits of openness while minimizing risks. This book aims to contribute to this important and ongoing policy debate, bringing together recent empirical work on the trade collapse, its causes and consequences, and the broader trade policy agenda in the post-crisis environment. It addresses critical policy issues revolving around the topic of outward-oriented growth strategy, including policy instruments that help manage risks associated with outward-orientation, lessons learned from the crisis for particular countries and regions, and how emerging trade policy issues such as climate change, commodities, global production networking, and migration affect the prospects for recovery and outward-oriented growth.