Impact of Liberalization, Economic Growth and Trade Policies on Current Accounts of Developing Countries: An Econometric Study

Ashok Parikh

No DP2002-63, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The objectives of this paper are to examine the impact of liberalization on trade deficits and current accounts for developing economies. Attempts at liberalization in trade could lead to an increase in imports in the short run and this could cause both trade and current account deficits in countries that adopt rapid liberalization. Liberalization could increase growth rates in the short run and this also could result into higher imports than exports.

Keywords: Balance of payments; Economic development; Free trade; International trade; Terms of trade (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (6)

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