The Importance of Trade for Developing Countries

  • Bela Balassa


Participation in international trade provides a Variety of benefits to the developing countries. They may obtain gains through resource allocation according to comparative advantage; the exploitation of economies of scale and increased capacity utilization; improvements in technology; increases in domestic savings and foreign direct investment; and increased employment.


Foreign Direct Investment Total Factor Productivity Realistic Exchange Rate Real Wage External Shock 
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Copyright information

© Bela Balassa 1989

Authors and Affiliations

  • Bela Balassa
    • 1
    • 2
  1. 1.The Johns Hopkins UniversityUSA
  2. 2.The World BankUSA

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