Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (4)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Deraniyagala, S.
Right arrow Articles by Fine, B.
Right arrow Search for Related Content
Related Collections
Right arrow F12 - Models of Trade with Imperfect Competition and Scale Economies
Right arrow F13 - Trade Policy; International Trade Organizations
Right arrow F14 - Country and Industry Studies of Trade
Right arrow F43 - Economic Growth of Open Economies
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Cambridge Journal of Economics 25:809-825 (2001)
Copyright © 2001 Cambridge Political Economy Society

Critical Survey

New trade theory versus old trade policy: a continuing enigma

Sonali Deraniyagala and Ben Fine

SOAS, University of London

Abstract

This paper examines the theoretical and empirical grounds for trade liberalisation. We note that many of the conventional arguments relating to the static and dynamic gains from liberalisation are based on fragile theoretical grounds. We also show that, although new trade theory takes account of some of the complexities of international trade and although the analytical thrust of many models justifies intervention, such policy conclusions are rejected even by those at the forefront of these theories on the grounds of political economy arguments which do not stand up to careful scrutiny. Finally, we show that arguments favouring trade liberalisation are not supported by existing empirical research, which generally fails to capture the complex and ambiguous effects of liberalisation and openness.

Key Words: Trade • Trade policy • Country and industry studies of trade


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.