Anthony P. Thirlwall

The Rhetoric and Reality of Trade Liberalisation in Developing Countries

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Abstract

The paper reviews the evidence of the impact of trade liberalisation on the economic performance of poor developing countries with respect to trade and the balance of payments, economic growth, poverty reduction, the distribution of income within countries, and the distribution of income between countries, and finds that trade liberalisation has not delivered the benefits expected. Economic theory, and the historical and contemporary evidence, all provide arguments for protection of industrial activities in developing countries.

Keywords

  • Trade Liberalisation
  • Trade Policy
  • Income Distribution
  • Poverty

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