Growth, the external terms of trade and endogenous trade liberalization

Authors
Devereux, J Chen, LL
Citation
J. Devereux et Ll. Chen, Growth, the external terms of trade and endogenous trade liberalization, PUBL CHOICE, 98(1-2), 1999, pp. 43-57
Citations number
37
Categorie Soggetti
Politucal Science & public Administration
Journal title
PUBLIC CHOICE
ISSN journal
00485829 → ACNP
Volume
98
Issue
1-2
Year of publication
1999
Pages
43 - 57
Database
ISI
SICI code
0048-5829(199901)98:1-2<43:GTETOT>2.0.ZU;2-9
Abstract
We study the effects of growth and changes in the external terms of trade o n protection. There are two sectors, an urban sector and a rural sector, an d trade policy is used to redistribute income between them. We show that gr owth precedes trade liberalization. In addition, we find that trade reform is triggered by falls in the world prices of primary exports or intermediat e imports. These results are shown to hold for tariffs and quotas.