1 option
Growth Before And After Trade Liberalization / Salinas, Gonzalo
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications")- Format:
- Book
- Government document
- Author/Creator:
- Salinas, Gonzalo
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Currencies and Exchange Rates.
- Development.
- Economic Conditions and Volatility.
- Economic Growth.
- Economic Indicators.
- Economic Performance.
- Economic Theory and Research.
- Emerging Markets.
- Exchange.
- Exports.
- Finance and Financial Sector Development.
- Free Trade.
- GDP.
- GDP Per Capita.
- Goods.
- Income.
- International Economics & Trade.
- Investment.
- Law and Development.
- Macroeconomics and Economic Growth.
- Poverty Reduction.
- Private Sector Development.
- Pro-Poor Growth.
- Protectionism.
- Theory.
- Trade.
- Trade Barriers.
- Trade Law.
- Trade Liberalization.
- Trade Policies.
- Trade Policy.
- Trade Reforms.
- Variables.
- Local Subjects:
- Currencies and Exchange Rates.
- Development.
- Economic Conditions and Volatility.
- Economic Growth.
- Economic Indicators.
- Economic Performance.
- Economic Theory and Research.
- Emerging Markets.
- Exchange.
- Exports.
- Finance and Financial Sector Development.
- Free Trade.
- GDP.
- GDP Per Capita.
- Goods.
- Income.
- International Economics & Trade.
- Investment.
- Law and Development.
- Macroeconomics and Economic Growth.
- Poverty Reduction.
- Private Sector Development.
- Pro-Poor Growth.
- Protectionism.
- Theory.
- Trade.
- Trade Barriers.
- Trade Law.
- Trade Liberalization.
- Trade Policies.
- Trade Policy.
- Trade Reforms.
- Variables.
- Physical Description:
- 1 online resource (50 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2006
- System Details:
- data file
- Summary:
- 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.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.