Why trade liberalization is good for growth

Article Abstract:

Developing countries that have used import subsititution for their economic growth strategy should consider trade liberalization as the next logical step in their bid for economic growth. Continued use of import-substitution as a growth strategy could only lead to restrictive trade policies due to the need to save foreign exchange which could be stripped by production requirements. Trade liberalization should be used in the context of an outer-oriented trade strategy so as to offset the effects of imports by promoting the growth of export.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Restraint of Trade, Economic aspects, Political aspects, Economic development

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Demand and supply factors in the determination of NIE exports: a simultaneous error-correction model for Hong Kong

Article Abstract:

An empirical study analyzes the demand and supply for exports of developing countries using Hong Kong as a model. Export volumes and prices are determined to be affected by changes in demand and supply. Findings indicate that developing countries grow through technology transfer from industrialized countries and through increase in world demand for their export products. External effects are also attributed to influence the export market opportunities and the large income elasticities of thes newly industrializing countries.

Hong Kong, Supply and demand

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Foreign direct investment and growth in EP and IS countries

Article Abstract:

The role of foreign direct investment in the growth of developing economies is examined in a new growth theory framework. Cross-section data from a sample of 46 developing countries are used to test Jagdish Bhagwati's hypothesis. Bhagwati's hypothesis states that foreign direct investment is more beneficial in export promoting countries than those adopting an import substituting strategy.

Foreign investments, Foreign trade promotion, Import substitution

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