There is general puzzlement in both academic and policymaking circles about the supposed failure of the liberalization experiments that were undertaken in the mid- to late 1970s by some developing countries, particularly those located in the Southern Cone of Latin America (Argentina, Chile, and...

The liberalization of foreign trade and capital movements, or what is commonly termed opening up the economy, is a subject of increasing interest to developing countries, including many in Latin America. While the longer-run costs and benefits of such a strategy may be well known, there has been...