ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Strategic Trade Policy and Developing Countries

New theories of 'strategic' trade policy developed during the 1980s challenged economists belief in the optimality of free trade. However, influential critics soon dismissed the relevance of the new theories to practical policy, especially in developing countries. This paper argues that imports of developing countries are frequently supplied under conditions of imperfect competition, and that consequently the environment for strategic import policy exists. This is first illustrated by indirect empirical evidence, and then with reference to historical and institutional features of developing countries' import trade, reinterpreted in the light of modern theories of industrial organisation.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top