TRADE LIBERALIZATION AND GROWTH IN DEVELOPING-COUNTRIES - SOME NEW EVIDENCE

The 1980's and 1990's have seen a remarkable wave of unilateral libera lization. Tn some cases the pressures for reform have been internal an d programs have been designed and implemented without the involvement of any external agency. Where developing countries are concerned, in m ost cases, the by multilateral lending agencies have had a key role to play in securing commitment to reform, its design and implementation. Experience with trade reforms has been mixed with evidence of growth enhancement in some programs but of stagnation in many others. The foc us of this paper is the effect of liberalization on growth of GDP. Mor e specifically we concentrate on a group of countries which have liber alized in the post-1985 period. The sample is broadly based in its geo graphical coverage and in the stage of development of the countries co ncerned. Our sample also includes some 44 non-liberalizers over the pe riod in question. Using panel data estimation techniques, we are inter ested in whether these recent liberalizations have been associated wit h faster or slower growth. (C) 1997 Elsevier Science Ltd. All rights r eserved.