Part IIA, Paper 4 Economic Development

Topic 5

Trade and Development

‘Although import substitution unavoidably has a key role to play in a country’s first steps towards
industrialisation, subsequent economic dynamism depends on export promotion.’ Discuss in relation to
Africa and India.

Theory
*Ray, Debraj. (1998). Development Economics, chapters 16-18.
Hayami, Yujiro. (2001). Development Economics, chapters 8.1 and 8.2.
* Bhagwati, J. N. (1982). ‘Directly-Unproductive, Profit-Seeking Activities’, Journal of Political Economy 90
(1982), 988-1002.
* Boltho, A. / Allsopp, C. (1987). ‘The Assessment: Trade and Trade Policy’, Oxford Review of Economic
Policy, 3.
Greenaway, D. / Milner, C. (1987). ‘“True Protection” Concepts and Their Role in Evaluating Trade Policies in
LDCs’, Journal of Development Studies 23.
Greenaway, D. / Nam, C. H. (1988). ‘Industrialization and Macroeconomic Performance in Developing Countries
under Alternative Trade Strategies’, Kyklos 41, 419-35.
* Krueger, A. O. (1984). ‘Trade Policies in Developing Countries’, in Jones, R. W. / Kenen, P. B. (eds.).
Handbook of International Economics vol. I.
*Krugman, P. R. (1987). ‘Is Free Trade Passé?’, Economic Perspectives.
* Streeten, P. (1982). ‘A Cool Look at ‘Outward-Looking’ Strategies for Development’, The World Economy 5,
159-70.
Ranis, G. / Raut, L. K. (1999). Trade, Growth and Development.

Africa
Angus Deaton, “Commodity Prices and Growth in Africa,” The Journal of Economic
Perspectives 13:3, Summer 1999, pp. 23-40.
*P. Collier and T. Venables 2007, Rethinking trade preferences: how Africa can diversify its exports World
Economy, 30, 1326-45.
Bigsten, A., P. Collier, S. Dercon, M. Fafchamps, B. Gauthier, J.W. Gunning, A. Oduro, R. Oostendorp, C.
Pattillo, M. Söderbom, F. Teal and A. Zeufack, 2004, “Do African manufacturing firms learn from exporting?”,
Journal of Development Studies, Vol. 40 (3), pp. 115-141.

India
Eswaran, M. / Kotwal, A. (1994). Why Does Poverty Persist in India?, chapters 7 and 8.
M. Alessandrini, B. Fattouh, and P. Scaramozzino, 2007, “The changing pattern of foreign trade specialization in
Indian manufacturing”, Oxford Review of Economic Policy 23: 270-291
Nidugala, G. K. (2000). ‘Exports and Economic Growth in India: An Empirical Investigation’, Indian Economic
Journal 47:3, 67-78.
Patnaik, P. (1997). ‘The Context and Consequences of Economic Liberalisation in India’, Journal of International
Trade and Economic Development, 6:2, 165-78.
Rajan, Raghuram (2006) “India the Past in its Future,” http://www.imf.org/external/
np/speeches/2006/012006.htm
Srinivasan, T. N. / Bhagwati, Jagdish. (1999). ‘Outward-Orientation and Development: Are Revisionists Right?’
Economic Growth Center, Yale University, Center Discussion Paper no 806.
Srinivasan, T. N. (1996).’Economic Liberalization and Economic Development: India’, Journal of Asian
Economics, 7:2, 203-216.
F. Zilibotti & P. Aghion & R. Burgess, 2004. "The Unequal Effects of Trade Liberalization: Theory and
Evidence from India," 2004 Meeting Papers 40, Society for Economic Dynamics.