TRADE LIBERALIZATION UNDER NEW REALITIES

S. Zahid Ali and Sajid Anwar ()
Additional contact information
S. Zahid Ali: Lahore University of Management Sciences
Sajid Anwar: University of Adelaide

Journal of Economic Development, 2006, vol. 31, issue 1, 1-16

Abstract: The last few decades have witnessed a significant influx of direct foreign investment in developing countries. The increased flow of foreign investment has contributed to the ability of developing countries to produce import competing manufactured goods by combining imported and domestically produced inputs. This situation has to some extent changed the comparative advantage of developing countries as suggested by the product cycle theory. Within the context of this development, this paper attempts to examine the effectiveness of devaluation and other import restricting polices. The paper argues that trade liberalization remains the most desirable policy. Specifically a cut in import and export duties is found to be beneficial both in the shortrun and the longrun.

Keywords: Devaluation; Trade Liberalization; LDCs (search for similar items in EconPapers)
JEL-codes: F40 F41 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.jed.or.kr/full-text/31-1/31-1-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:31:y:2006:i:1:p:1-16

Access Statistics for this article

Journal of Economic Development is currently edited by Sung Y. Park

More articles in Journal of Economic Development from Chung-Ang Unviersity, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sung Y. Park ().