Trade liberalization and industrial development: theory and evidence from Latin America

A. Geske Dijkstra

Research output: Working paperAcademic

Abstract

This paper examines, first, the expected theoretical effects of trade liberalization on the efficiency of manufacturing industry. It concludes that positive static efficiency effects (X efficiency and allocative efficiency) cannot be taken for granted but that allocative efficiency effects may be strong, in particular for small countries. Countries that do not have an industrial base yet will not experience dynamic efficiency effects, and there may be a trade off between static and dynamic efficiency. In the second part, the available evidence for Latin America confirms many of the theoretical expectations. Particular attention is given to developments in manufactured exports.
Original languageEnglish
Place of PublicationDen Haag
PublisherInternational Institute of Social Studies (ISS)
Number of pages36
Publication statusPublished - Aug 1997
Externally publishedYes

Publication series

SeriesISS working papers. General series
Number255
ISSN0921-0210

Series

  • ISS Working Paper-General Series

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