Trade Liberalization Sequence for Sustained Economic Growth

This paper delivers a simple model to generalize the successful trade liberalization experiences in East Asian countries as a strategy for attaining inclusive and sustained economic growth. The sequential approach, based on preserving existing production units while liberalizing trade-oriented production sectors and FDI, can be understood as a way to promote international interactions and learning by practice, to extend the limit of market and sources of capital and to introduce market incentive and pressure on all related agents for attaining dynamic efficiency. It provides a regular liberalization sequence is available to ignite and sustain economic growth for most lagged economies