Does Trade Liberalisation Promote Economic Development?[Note 1. A paper written as the President's Lecture delivered at ...]

The last twenty years have seen an extraordinary number of trade liberalisation episodes in developing countries. Some have been voluntary, most have been policy conditioned under the aegis of the Bretton Woods agencies. This paper begins by setting out the background to these trade reform programmes and details their ingredients. It then goes on to review the evidence extant on liberalisation and growth and reports new evidence. The latter suggests that liberalisation does tend to enhance growth, albeit with a lag. The paper concludes with an analysis of the lessons learned from experience with liberalisation in terms of credibility, timing and sequencing.