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Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence

Dani Rodrik

No 4417, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper reviews recent theory and evidence on trade and industrial policy reform in developing countries. First, the theoretical and empirical basis of the rationales for policy reform are discussed. Next, two sources of heterodoxy are identified and evaluated: (a) the East Asian experience with interventionist industrial policies; (b) recent models of imperfect competition. The survey then turns on strategic issues in reform, and discusses the theory of piecemeal reform, tax or tariff uniformity, credibility, political economy, and interactions with stabilization policy. The penultimate section reviews the available evidence on the consequences of recent policy reform.

JEL-codes: F13 F43 (search for similar items in EconPapers)
Date: 1993-08
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Published as Rodrik, Rani, 1995. "Trade and industrial policy reform," Handbook of Development Economics, in: Hollis Chenery†& T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 45, pages 2925-2982 Elsevier.
Published as J. Berhman and T.N. Snkivosan (eds.), Handbook of Development Economics, vol III, Amsterdam, North-Holland, 1996.

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