The importance of trade for developing countries
Balassa, Bela
This paper indicates the benefits developing countries may derive through international trade. It reviews recent trends in world trade in major product groups; analyzes the economic performance of developing countries applying outward-oriented and inward-oriented policies; and examines the relationship between exports and economic growth. It is further shown that external constraints do not stand in the way of an increasing number of developing countries adopting outward-oriented policies. Recommendations are made for the adoption of such policies and for developing country participation in multilateral trade negotiations.
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