Journal of Economic Perspectives: Vol. 6 No. 1 (Winter 1992)


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The Case for Trade Liberalization in Developing Countries

Article Citation

Dornbusch, Rudiger. 1992. "The Case for Trade Liberalization in Developing Countries." Journal of Economic Perspectives, 6(1): 69-85.

DOI: 10.1257/jep.6.1.69


This paper reviews the actual situation of protection in developing countries, and then discusses the prospective gains from liberalization. Three experiences with liberalization, from three different parts of the world, are sketched: Turkey, Korea, and Mexico. Next the paper considers what can go wrong with trade reform. Finally, it focuses on two new directions in trade strategy: service trade liberalization and regional free trade agreements.

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Dornbusch, Rudiger (MIT and NBER)

JEL Classifications

O19: International Linkages to Development; Role of International Organizations
F13: Trade Policy; International Trade Organizations


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