There has been no single magic formula for the success of the East Asian transition economies (Cambodia, China, Lao People's Democratic Republic, and Vietnam), whose performance in export and income growth has been strikingly better than that of transition economies in Eastern Europe and the...

A survey of more than 50 empirical papers shows that the adjustment costs of trade liberalization are small relative to the benefits. Moreover, manufacturing employment typically increases with trade liberalization. The limited data suggests that trade liberalization reduces poverty

Evidence from Mercosur suggests that eliminating duty drawbacks for intra-regional exports would lead to increased counterlobbying against protection of intermediate products. Without the duty drawback, the common external tariff would have been an estimated 3.5 percentage points (25 percent)...

Lessons from world experience about the consequences of exchange rate overvaluation (the frequent cause of trade crises), the consequences of trying to defend an overvalued exchange rate, and the most appropriate policies for resolving an overvaluation

The increase in investment abroad during the past two decades may help explain the simultaneous worldwide rush toward free trade. The entry of foreign capital may change the political game, increasing openness to international trade no matter what form the foreign capital takes (whether entering...

Small states should pursue unilateral and multilateral trade liberalization, and members of the African, Caribbean, and Pacifice (ACP) group should expand reciprocal agreements with the European Union (Cotonou Agreement) to the entire OECD. They should intensify South-South regional cooperation...

Reflecting the large initial distortions, trade, exchange rate, and energy reforms could generate large welfare gains for the Islamic Republic of Iran. If combined with direct income payments to all households (not just the poor), the poor would benefit enormously. The authors show that well...