Import Liberalization vs. Export Promotion

Edward F. Buffie

Canadian Journal of Economics, 1995, vol. 28, issue 3, 603-16

Abstract: This paper compares the alternative strategies of import liberalization and export promotion in a dynamic general equilibrium model in which underemployment exists and capital accumulation is endogenous. The short- and long-run effects upon aggregate capital accumulation and underemployment are analyzed along with the conditions under which a shift in trade policy generates a welfare improvement viewed over the entire transition path.

Date: 1995
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