India Trade Policy Review

If there were an Economists Creed, it would surely contain the affirmations I understand the Principle of Comparative Advantage and I pep up Free Trade (Krugman 131). With these words, which open his widely-referenced 1987 article, Is Free Trade goodbyeé?, Paul Krugman pledged not only his, but any economists allegiance to open economies and free allot. Unfortunately, history has shown that the Economists Creed is neither pledged nor promoted by all. In fact, for the greater part of the 20th century, many economists and policymakers have given cryptograph credence to this so-called Creed and have pushed their countries toward protectionist merchandise policies. though most developed countries have become to a greater extent and more open since the World War II, the same cant be said for developing countries. Post-WWII, an overwhelming number of the latter, in sharp contrast to the former, became more and more autarkic. They adopted regulatory trade regimes that consisted of everything from tariffs and quotas to excise taxes and prohibitive customs standards.

This type of trade policy strategy, known as deduction-substituting industrialization, was adopted with the hope that import restrictions would allow the domestic manufacturing industry to flourish (by shielding the comparatively infant industry from foreign competition) and actually lead to speed up economic growth (Coughlin 19). To the dismay of most developing economies, plane if the trade regime created growth in manufactures, it did not effect in the economic development they had hoped for (Panagariya 7). One of the most historied transitions of a developing economy from trade restriction to trade liberalization belongs to India. The development of this economy is particularly intriguing not only because of the severity to which trade was restricted, but also because its relatively recent liberalization process has been accompanied by remarkable economic growth (Bhagwati 102). But, before we examine the current... If you want to pay a full essay, order it on our website: Ordercustompaper.com

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