Liberalizing Foreign Trade, vol. 7, Lessons of Experience in the Developing World.

• Author: Tower, Edward

Liberalizing Foreign Trade, Volume 7: Lessons of Experience in the Developing World.

Edited by Michael Michaely, Demetris Papageorgiou and Armeane M. Choksi. Cambridge, Mass.: Blackwell, 1991. Pp. xxiv, 440. $75.00.(1)

This volume synthesizes the results of studies of liberalization experiences in 19 countries by 32 authors carries out at the World Bank and directed by the editors. Only the most somber economist would be unimpressed by the cover design which features gilt lettering on a forest green plaque on a crimson background. Perhaps this symbolizes the elegance of free market solutions, and their ability to stimulate economic growth in what were previously command economies.

All will appreciate the user friendliness of the volume. Each chapter is introduced by an executive summary in huge print. The material is well organized, and the graphs are plentiful and useful. These chapters are followed by a concluding chapter, which suggests broad rules to follow in designing a liberalization policy. Three appendices close the volume: A straightforward piece on the relevant partial equilibrium theory of liberalization, with focus on QRs and monopoly power a piece which uses regression analysis to test hypotheses; and a set of useful short sketches of the 19 country experiences with liberalization.

I was disappointed in reading the book that my way of thinking about trade restrictions and liberalization wasn't altered significantly. I missed the excitement that I got from changing my conceptual framework for approaching liberalization that came from reading the synthesis volumes in the Bhagwati-Krueger NBER series. In some cases, I would have liked the authors to have speculated further on the reasons behind their empirical results. For example, why is export performance prior to the liberalization correlated positively with the survival of the liberalization? I can think of reasons why the correlation might be negative. But, I was reassured that the findings in the earlier series hold up. As in the B-K series there are analyses of the effects of liberalization. But here is more focus on what circumstances stimulate liberalization and what circumstances sustain it.

Parts of this book should be required reading in trade and development courses from the undergraduate level on, because the results are interesting, and the qualities of structure and exposition are worth emulating. The structure of the book and clarity of exposition make the volume...