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Trade Policies and Development: Some New Issues

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  • Rodrik, Dani

Abstract

The 1980s have seen the beginnings of a change of heart among developing country policymakers, as the import-substitution consensus of the previous decade has all but evaporated. It is paradoxical that the 1980s should have become the decade of trade liberalization in LDCs, since this has also been a decade of macroeconomic instability. The benefits of liberalization become muted under conditions of macro instability. This paper discusses three questions that arise with this experience. First, how can the credibility and sustainability of the reforms be enhanced? Second, what role should trade reform play when it is implemented in the context of macroeconomic instability? Third, should we worry about the consequences of trade reform in the imperfectly competitive environments that characterize the developing economie.

Suggested Citation

  • Rodrik, Dani, 1990. "Trade Policies and Development: Some New Issues," CEPR Discussion Papers 447, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:447
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    Cited by:

    1. van Wijnbergen, Sweder, 1992. "Trade Reform, Policy Uncertainty, and the Current Account: A Non-Expected-Utility Approach," American Economic Review, American Economic Association, vol. 82(3), pages 626-633, June.
    2. Manuel R. Agosin, 1994. "Réformes des politiques commerciales et performances économiques," Revue Tiers Monde, Programme National Persée, vol. 35(139), pages 499-520.
    3. van Wijnbergen, Sweder, 1990. "Trade reform, policy uncertainty, and the current account," Policy Research Working Paper Series 520, The World Bank.
    4. Franco, Gustavo H.B. & Fritsch, Winston, 1992. "The political economy of trade and industrial policy reform in Brazil in the 1990s," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 33818, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. 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.

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