Weltwirtschaftliches Archiv

, Volume 132, Issue 3, pp 558–585 | Cite as

Trade policies, macroeconomic adjustment, and manufactured exports: The Latin American experience

  • Sarath Rajapatirana


Changes in trade policy, especially in quantitative import restrictions, have played an important role in the macroeconomic adjustment in all six countries. For long periods, trade policy tightenings and occasional liberalizations were the main instruments of balance-of-payments policy. Most tightenings were preceded by a deterioration in the current account. In several cases tight import restrictions had adverse effects on output and, hence, on investment and growth. Since changes in trade policies, referred to here as episodes, were usually part of a policy package, it is difficult to isolate the effects of the episodes themselves. Sometimes they have been followed by current account improvements and other times by deteriorations.


Exchange Rate Current Account Real Exchange Rate Trade Policy Trade Liberalization 
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© Institut fur Weltwirtschaft an der Universitat Kiel 1996

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  • Sarath Rajapatirana

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