The Impact of Trade Liberalisation on Exports, Imports and the Balance of payments of Developing Countries

2004 ◽  
Vol 114 (493) ◽  
pp. F50-F72 ◽  
Author(s):  
Amelia Santos‐Paulino ◽  
A. P. Thirlwall
Keyword(s):  
Developing Countries ◽  
Balance Of Payments ◽  
Trade Liberalisation ◽  
The Impact

scholarly journals Analysis of the Impact of International Monetary Fund Programs on Economic Performance of Kenya

2016 ◽  
Vol 8 (2) ◽  
pp. 159
Author(s):  
Henry Kerich
Keyword(s):  
Developing Countries ◽  
International Monetary Fund ◽  
Economic Performance ◽  
Structural Adjustment ◽  
Balance Of Payments ◽  
Unemployment Rates ◽  
High Unemployment ◽  
Structural Adjustment Programs ◽  
The Impact ◽  
Adjustment Programs

<p>Like most other countries in developing countries, Kenya faces economic challenges as it tries to stabilize its balance of payments, reduce external debts and curb high unemployment rates.  Structural adjustment programs (SAPs) are defined as economic programs mainly set for developing countries supported by the Bretton Woods institutions since the beginning of 1980s. As a result of prolonged balance of payments deficits, high unemployment rates and high debts, brought about by poor economic performance, the country has turned to International Monetary Fund for credit assistance. This research sought to examine if there was a relationship between structural adjustment programs and economic performance in Kenya. The results in this study revealed a significant correlation between IMF structural adjustment programs and economic performance in Kenya. The findings showed that the three dependent variables analyzed notably, balance of payments, debts, and unemployment showed a strong correlation with IMF structural adjustment programs.</p>

scholarly journals Impact of Trade Reforms on Poverty

2000 ◽  
Vol 39 (4II) ◽  
pp. 1127-1137 ◽  
Author(s):  
Usman Qadir ◽  
Muhammad Ali Kemal ◽  
Hasan Mohammad Mohsin
Keyword(s):  
Developing Countries ◽  
Vital Role ◽  
Trade Liberalisation ◽  
Total Trade ◽  
Trade Reforms ◽  
Trade Regimes ◽  
Short Run ◽  
International Trading ◽  
Industrialised Countries ◽  
The Impact

Trade plays a vital role in determining the growth process of any country. Trade liberalisation and openness of the economy are now almost universally accepted as the main ingredients of successful economic growth and welfare of the population. These are believed to be responsible for the exceptional growth of industrialised and newly industrialised countries. Many developing countries, under the auspices of the WTO are taking major steps to liberalise their trade regimes. However, in the short run, the impact of these policy changes is generally perceived to be painful for both the producers and the consumers; and especially so for the latter. A key question here is the impact of trade reforms on poverty, which has persisted in most developing countries despite concerted efforts on many fronts to eradicate this social evil. Like many developing countries, Pakistan has undertaken far-reaching trade reforms aimed at creating an open international trading environment. Pakistan’s dependence on international trade, as measured by the total trade to GDP ratio, has increased significantly from 13.3 percent in 1960-61, to 32.47 percent in 1992-93. As such, it is important to determine if there is a relationship between trade liberalisation and poverty alleviation; do trade reforms lead to reduction in country wide poverty levels or not.

scholarly journals The New Wave of Currency Devaluations in Africa – Will the Devalued Birr Help the Coffee Exports?

2019 ◽  
Vol 12 (4.) ◽  
pp. 101-118
Author(s):  
Szabolcs Pasztor
Keyword(s):  
Developing Countries ◽  
Current Account Deficit ◽  
Balance Of Payments ◽  
New Wave ◽  
Long Run ◽  
Negative Effect ◽  
Short And Long Term ◽  
Coffee Sector ◽  
The Impact

Despite the fact that currency devaluations are likely to have a negative effect on the economy in the long run, Ethiopia devalued its national currency, the birr (ETB), by 15 percent in 2017. They turned to this option in the hope of attracting more investments from abroad, decreasing import bills, improving the current account deficit and giving a boost to the exports of the coffee sector. A couple of months later, the impact seems to be promising because the export has been revived in some areas. However, it has to be stressed that the imported commodities may experience a price increase, there can be a widening balance of payments deficit and rising inflation. The paper aims to shed more light on the short- and long-term impacts of currency devaluations in the developing countries with a special emphasis on Ethiopia. Also, the recent Ethiopian measure is to be analyzed in greater detail highlighting the impacts on export earnings, import bills, the balance of payments, and on the overall competitiveness of the coffee sector.

scholarly journals Foreign Capital Inflow, Skilled-Unskilled Wage Gap, and Welfare in the Presence of the Informal Sector

2004 ◽  
Vol 43 (2) ◽  
pp. 125-147
Author(s):  
Kausik Gupta ◽  
Tania Basu
Keyword(s):  
Developing Countries ◽  
Informal Sector ◽  
Intermediate Product ◽  
Foreign Capital ◽  
Wage Gap ◽  
Full Employment ◽  
Capital Inflow ◽  
Trade Liberalisation ◽  
Informal Labour ◽  
The Impact

This paper attempts to analyse the impact of trade liberalisation on the skilledunskilled wage gap and the level of welfare of developing countries, which are generally characterised by large “informal” labour markets. A neo-classical full-employment foursector model has been developed, where the informal sector produces either a final product or an intermediate product on subcontracting basis. Evidence shows that in either case, trade liberalisation, in the form of an increase in foreign capital inflow, widens the skilled-unskilled wage gap of the economy under some reasonable conditions. It also shows that as a result of an increase in the foreign capital inflow, the level of welfare of the economy increases, when the informal sector produces a final product. However, when the informal sector produces an intermediate product on subcontracting basis, the level of welfare of the economy falls.

National Defence Under Alternative Trade Policy Regimes: Theory and Evidence from Developing Countries

2020 ◽  
Vol 56 (1) ◽  
pp. 31-59
Author(s):  
Tonmoy Chatterjee ◽  
Nilendu Chatterjee
Keyword(s):  
Developing Countries ◽  
Trade Policy ◽  
Comparative Statics ◽  
Trade Liberalisation ◽  
Policy Regime ◽  
Political Condition ◽  
Trade Model ◽  
The Impact ◽  
National Defence ◽  
The Way

Defence mechanism for any nation is the way through which internal as well as external geo-political condition can be stabilised. Moreover, defence sector can also be treated as one of the most potential sectors regarding financial transactions and the relevance of it is valid both in autarky and in the regime of international trade. Using Granger Causality for a panel of 27 developing countries across Asian and South American continents, we have found that different trade measures are playing major role in the way of functioning of national defence. For further analytical purpose and also to select the most effective trade policy regime among the alternatives, we have adopted a trade theoretic framework. In this regard, we have used a four-sector general equilibrium trade model with special emphasis on defence as well as R&D to defence to illustrate the impact of trade liberalisation on defence system. From such setup and by using bootstrap policy simulation we have found that trade liberalisation in the form foreign direct investment (specific to the R&D to defence) as the most effective trade regime to claim gains from trade in the presence of defence dualism for any small open developing economy. Such comparative statics is critical from the policy perspective. Policymakers should be cautious before defence industry liberalisation. JEL Codes: H56, C33, F11, F14, F21, D58

scholarly journals Impact of Covid-19 Pandemic on Balance of Payments: Evidence from Developed and Developing Countries

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Sohibjamol Jumaeva
Keyword(s):  
Developing Countries ◽  
Balance Of Payments ◽  
The Republic ◽  
The Impact

The article is devoted to the consideration of the pandemic impact on the balance of payments of developed and developing countries. In addition, the article presents proposals and recommendations aimed at mitigating the impact of pandemic on the balance of payments in the Republic of Uzbekistan.

The influence of inflation targeting on the pass-through effect of the exchange rate

2018 ◽  
pp. 70-84
Author(s):  
Ph. S. Kartaev ◽  
Yu. I. Yakimova
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Policy Regime ◽  
Short And Long Term ◽  
The Exchange Rate ◽  
Pass Through ◽  
The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

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