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Article: Trade liberalization and real exchange rate movement.
- Article from:
- IMF Staff Papers
- Article date:
- September 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 International Monetary Fund. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Since the 1980s, governments in many developing countries have undergone a dramatic change in their development strategies, abandoning statist philosophies in favor of market-based approaches. By the late 1990s, most countries of the world had integrated into the global economy. In the process of introducing market forces into their economies, many countries liberalized foreign trade, loosened control of the capital market, and privatized national industries. The large number of cases of trade liberalization provides an excellent testing ground for examining the effects of trade liberalization on the real exchange rate. In addition, while many early trade liberalizations ...