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Article: Trade liberalisation and productivity: a panel study of the Mexican manufacturing industry.
- Article from:
- Journal of Development Studies
- Article date:
- June 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 Frank Cass & Company Ltd. 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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I. INTRODUCTION
Some economists have advocated trade liberalism based on the premise that openness to trade leads to higher economic growth. For instance, Dornbusch [1992: 69-70] makes a case for trade liberalisation in developing countries on these grounds: '[S]ince the days of plentiful external credit are gone, attention must shift to productivity gains as the source of growth. Trade may offer part of the solution.' However, while neo-classical trade theory has a well-established proposition that trade liberalisation leads to level effects through improved allocation of resources, the theory is not unequivocal about the growth effects of trade and liberalisation. ...