Now that import-substitution policies have failed and been discredited, there has been a shift in favor of interventions on behalf of export interests. The author argues that close scrutiny reveals these arguments to be as flawed as the old arguments for import substitution. Among other things,...

This study reviews trends in the process of India's integration into the world economy in the context of the experience of developing countries as a whole, and evaluates the main factors which may hamper the pace at which integration occurs in the future. Based on a consideration of prospects...

The combination of distance, poor infrastructure, and being landlocked by neighbors with poor infrastructure, can make transport costs many times higher for some developing countries than for most others. Drawing on two traditions of economic modeling --Heckscher-Ohlin trade theory and von...

A crucial step in policy analysis involves computing consequences of policy actions. The author shows how to implement numerically a general equilibrium model in EViews. Computable general equilibrium models are now commonly used in both industrial and developing countries to assess the impact...

Intra-industry trade as a share of total tradebetween Central and Eastern European nations and the European Union (EU) is among the highest of all the EU's bilateral trade flows. The authors break down data on these trade flows into horizontal and vertical components, and investigate the...

Some economists have argued that the process of disintegration of the world economy between the two world wars led to income divergence between the countries. This is in keeping with the view that economic integration leads to income convergence. The paper shows that the view that the period...

The author examines how benefits - and costs - of a free trade area are divided among member countries. Outcomes depend on the member countries'comparative advantage, relative to one another and to the rest of the world. The author finds that free trade agreements between low-income countries...

One of the apparent inconsistencies in the breakup of multinational states is that, while the republics justified their decision by claiming they wanted increased sovereignty, the new states'strong desire to join the European Union shows their intention to dissipate this sovereignty. How can the...

The differences in financial development between advanced and developing countries are pronounced. It has been observed, both theoretically and empirically, that these differences in countries'financial systems are a source of comparative advantage and trade. This paper points out that to the...

The authors investigate the impact on economic growth and development of long-run movements in the external terms of trade, with special reference to the experience of 18 oil-exporting countries between 1973 and 1989. They argue that this sample approximates a controlled experiment for examining...