The authors analyze the welfare effects of regional integration in a model of endogenous protection. They show that introducing preferential trading leads to an increase in protection against countries outside the preferential trading area. Moreover, the important Meade result of preferential...

Drawing on the game theory concepts, the authors discuss why countries form themselves into trading blocs and what the relations between these blocs are likely to be. They identify three types of regimes: (a) unilateral trade policies - which are noncooperatives; (b) multilateral agreements...

U.S. trade policy since the 1980s has been quite different from trade policy in the first two or three decades after World War II. Until the 1970s, U.S.trade policy was dominated by systematic concerns. Trade policy actions were subject to the disciplines of constructing an open, stable, and...

Trade, aid, and investment are more inextricably linked in sub-Saharan Africa than anywhere else in the world, contends the author, whose survey of sub-Saharan Africa's prospects for trade, aid, and investment lead to the following broad conclusions. Developing an outward orientation, improving...

Adjustment programs in sub-Saharan Africa have been somewhat less intensive in trade reform than programs in other countries have been. Implementation of trade reform overall, however (but not the most important reforms), has been better in sub-Saharan Africa. Retrogression has also been more...

In 1991 and 1992, the European Union (EU) and the economies in transition of Central and Southern Europe - the CEE-5 (Bulgaria, the former Czechoslovakia, Hungary, Poland and Romania) - signed the European Association Agreements. The Agreements established a new framework for their mutual...

Some developing countries may experience important trade losses if tariffs are liberalized on a general most-favored-nation (MFN) basis. Sub-Saharan Africa appears to be especially vulnerable to this problem. African countries receive important Lome Convention preferences in the European...

Empirical studies have paid little attention to the supply-side forces behind the export performance of the Central and Eastern European countries of Bulgaria, Czechoslovakia, Hungary, Poland, and Romania (CEE-5) in OECD markets after the collapse of central planning. The author examines export...

Understanding how prices and quantities affect investment demand is important in analyzing adjustment policies in many developing countries. Recent literature emphasizes that uncertainty curtails private investment, adding a risk premium - the price of waiting. Several recent empirical studies...

In the late 1980s, Japan became the biggest source of foreign direct investment (FDI) in the world. The main beneficiaries of the rapid increase in investment flows were industrial countries, but the developing world (especially East Asia and Latin America) also received substantial inflows. In...