According to the Washington Consensus, developing countries’ growth would benefit from reductions in barriers to trade. However, the empirical basis for judging trade reforms is weak. Econometrics are mostly ad hoc; results are typically not judged against models; policies are poorly measured;...

Economic liberalization. -- Industrial and trade strategy. -- Technological development. -- The external debt burden. -- Curbing industrial unrest. -- Environmental protection. -- Government size and functions. -- A final word. -- Appendix: International trade theory