Most transition economies in Central and Eastern Europe have rather surprisingly resisted protectionist pressures-at least during early stages of reform-and pursued fairly liberal trade policies. In this paper, trade policy during transition is explained from a political economy perspective. It is shown that pursuing liberal trade policies can be a rational strategy of reform politicians, maximizing the probability of electoral success. Copyright The European Bank for Reconstruction and Development, 1998.
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.