Trade Policy as an Input to Development

Anne O. Krueger

NBER Working Paper No. 466 (Also Reprint No. r0111)
Issued in November 1980
NBER Program(s):   ITI   IFM

My topic is the question: what difference does the set of commercial policies chosen by a developing country make to its rate of economic growth? Three points are salient. First, in its present state, trade theory provides little guidance as to the role of trade policy and trade strategy in promoting growth. Second, the empirical evidence overwhelmingly indicates that there are important links between them. Third, a number of hypotheses as to the reasons for these links have been put forward, but there is not as yet sufficient evidence to enable us to estimate their relative importance.

(382 K)

Published:

• Krueger, Anne O. "Trade Policy as an Input to Development." The American Economic Review, Vol. 70, No. 2, (May 1980), pp. 288-292. ,
• Reprinted in G.M. Meier, Leading Issues in Economic Development. 5th ed., Oxford University Press, 1988.

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