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Has Trade Liberalisation in Poor Countries Delivered the Promises Expected?

By Penélope Pacheco-López and A.P. Thirlwall

Abstract

The paper reviews the evidence of the impact of trade liberalisation on the economic performance of poor developing countries with respect to poverty reduction, the distribution of income within countries, the distribution of income between countries, trade and the balance of payments, and economic growth, and finds that 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.Trade liberalisation; trade policy; income distribution; poverty

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