Journal Article
Free trade agreements and the credibility of trade reforms
Abstract: David M. Gould argues that free trade agreements can help developing countries establish the credibility essential to successful trade reform. Credibility, he explains, is necessary if trade reform policies are to entice investment into the economic sectors where the liberalizing country has its greatest comparative advantage. As Gould explains, a free trade agreement enhances the credibility of trade reform policies by providing evidence of a government's long-term commitment to free trade and by discouraging protectionist policies in foreign markets. Gould concludes with an outlook for U.S.-Mexican free trade.
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Dallas
Part of Series: Economic and Financial Policy Review
Publication Date: 1992
Issue: Q I
Pages: 17-27