__ A model of the world sugar industry shows that sugar prices are naturally chaotic. As a consequence, and contrary to the conventional creed, liberalisation, instead of damping fluctuations out, is likely to increase them. But since decision makers are risk averse, and restrain production when faced with uncertain prices, the average price level without is significantly lower than with libera...

The last two decades can be characterised as a period of globalisation which has involved economic liberalisation combined with the opening-up of economies to international trade and financial flows. Economic liberalisation implied the lifting of various controls and restrictions and of entry barriers into specific sectors like banking, as well as the pursuit of market-oriented reforms, with fa...

In this paper we examine trade misinvoicing as a means of evading capital controls. With the trade liberalisation that has taken place in most emerging markets, and with an outlook of high GDP growth in many of these countries, traditional explanations for trade misinvoicing such as high custom duties and weak domestic economies cannot explain the misinvoicing witnessed today. We construct a mu...

In this paper we consider whether the effects of trade liberalisation on GDP growth are offset by changes in other policy variables, namely changes in fiscal policy. Governments increase welfare spending as a response to greater exposure to international trade. We find for a sample of developing countries that this is not the case. Countries that liberalise their trade regimes do increase their...

This paper analyses a model of economic development in which international differences in industrial structure and income are caused by the agglomeration of industry in a subset of countries. Economic development may not be a gradual process of convergence by all countries, but instead involve countries moving sequentially from the group of poor countries to the group of rich countries. The rol...

Using a world trade model with India subdivided into states, the paper examines how regional disparities are affected by domestic inter-state trade as well as international trade. According to the analysis, international liberalisation promotes decentralisation and convergence, not divergence, so trade is not to blame for India’s growing regional disparities. High economic growth within India m...

The provisions of the World Trade Organisation Agreement on the Application of Sanitary and Phytosanitary Measures are designed to extend the liberalisation of trade, without increasing the risk to public, animal or plant health. The international standards set by the Office International des Epizooties (OIE) will be used as a benchmark by World Trade Organisation panels and committees when eva...