This paper analyses the consequences of trade liberalisation on firms’ internal organisation, with formal and informal arrangements. I extend the ’relational contract’ approach of Baker, Gibbons, and Murphy (2002) in an open economy set-up. I find that freer trade in final goods increases the quasi-rents from suppliers’ specific investments, leading to an increase in outsourcing. When trade lib...

In the 1980’s and 1990’s many African countries liberalised their trade policy, although since the mid 1990s there are countries that did not alter tariffs. This allows us to analyse the effects of trade liberalisation on the change in imports using Difference-inDifferences techniques that allow us to evaluate the impact on imports of trade liberalisation at the general and sector-specific leve...

This paper investigates the implications of matching and searching in inter rm trade. From a schematic model, whereby rms nd long-term trading partners by successive matches, we derive some important propositions. Trade between matched rms generates an expected economic pro t, depending on match quality, while trade between searching rms may be conducted at a short-term loss, being a form of ca...

The Indian industrial policy made a major transition towards liberalisation in the mid-1980s, with the proponents of liberalisation expecting not only a general increase in the efficiency of Indian industry but also improvement in terms of innovative performance. Extensive industrial studies, as well as macro-level data, suggest that liberalisation in the field of industrial licensing and forei...

Sri Lanka is a classic twin deficits economy characterised by fiscal dominance - high and public debt. This has manifested in degree of macroeconomic volatility, evidenced its frequent balance-of-payments crises instability. study assesses the validity triple deficit hypothesis presence trade liberalisation investigating causal association between deficit, current account financial with four-va...

We survey different strategies in the transition process, and investigate their role in growth prospects. Openness, exchange rate regimes and approaches to trade and capital market liberalisation are examined. Their role in facilitating the diffusion of new products and processes to transition economies is discussed. Policies toward openness and integration have an effect on the ability of econ...

This paper examines the impact of timber trade liberalisation on economic welfare and forest conservation in Sri Lanka. A partial equilibrium market simulation model was used to analyse the welfare impacts. Results show that removal of all border charges reduce timber price by about 25%. Decline in timber price reduces the incentives for illegal logging and enhances forest conservation in Sri L...