How important to welfare and growth in developing countries are restraints on foreign providers of producer services? Limiting such services not only may limit growth but may hurt some of the very people - domestic skilled workers in such service sectors - those restraints are designed to protect

During a period of trade liberalization (1985-89), when Mexican manufacturing experienced an important inflow of foreign direct investment, manufacturing sectors with heavy foreign direct investment received greater protection in import-competing sectors. With the move toward greater openness,...

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