Puga, Diego and Venables, Tony (1996) Trading arrangements and industrial development. CEPDP, 319. Centre for Economic Performance, London School of Economics and Political Science, London, UK.
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This paper outlines a new approach for analysing the role of trade in promoting industrial development. It offers an explanation as to why firms are reluctant to move to economics with lower labour costs, and shows how trade liberalisation can change the incentives for firms to locate in developing countries. Unilaterally liberalising imports of manufcatures can promote industrialisation, but membership of a preferential trading arrangement is likley to create larger gains. South-South PTAs will be sensitive to the market size of member states, while North-South PTAs seem to offer better prospects- for participating Southern economies, if not for excluded countries.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1996 the authors|
|Uncontrolled Keywords:||preferential arrangements, industrialisation, development, linkages|
|Library of Congress subject classification:||H Social Sciences > HF Commerce
H Social Sciences > HD Industries. Land use. Labor
|Journal of Economic Literature Classification System:||R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
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