ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Strategic Trade Policy and Developing Countries

New theories of 'strategic' trade policy developed during the 1980s challenged economists belief in the optimality of free trade. However, influential critics soon dismissed the relevance of the new theories to practical policy, especially in developing countries. This paper argues that imports of developing countries are frequently supplied under conditions of imperfect competition, and that consequently the environment for strategic import policy exists. This is first illustrated by indirect empirical evidence, and then with reference to historical and institutional features of developing countries' import trade, reinterpreted in the light of modern theories of industrial organisation.

To read the full text Login


To know more about our subscription offers Click Here.

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top