Trade, Industrialization and Development
Research Training Network
Summary
In the last two decades, many countries have achieved dramatic reductions in their barriers to trade. For some this has resulted in higher growth and improved economic performance, while for others there has been only a limited supply response and disappointing results. Whereas the trade and development literature of the 1960s and 1970s contended that “getting prices right” would result in improved economic performance, it is now recognized that these reforms are necessary but not sufficient to generate growth. Some regions of some developing countries have been successful in attracting some industries, this generally raises the demand for labour, which subsequently raises wages in these countries, whereas other regions and countries have been left out of this process. Although there is consensus that openness provides a better environment for economic growth, critical questions remain about the linkages between trade and the successes and failures of the last twenty years. These issues become more pressing as the gap between the poorest countries and the rest of the world continues to grow.
This research project seeks to understand the conditions under which countries succeed in participating effectively in the world economy, and are able to secure industrial development and modernisation. To achieve this objective the network will analyse the interactions between trade, industry, institutions and economic development, both from the theoretical and the empirical standpoint. The teams will comprise researchers with expertise in trade economics (trade policy, economic geography, FDI and multinational firms), industrial organisation, economic growth, political economy, and development economics. Research will cover cross-country analysis, in-depth industry and country analyses, and policy analysis.
There are four broad strands to the research:
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Investigation of patterns of industrial development.
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Detailed analysis of firm and industry performance in selected countries.
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Analysis of the role of institutions in development.
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Policy Analysis, drawing on our findings.
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Summary