Extent and evaluation of protection in developing countries

Tariff protection and nontariff barriers are higher in developing countries than in industrial nations. The tendency of protection to decline with a higher level of development can be explained by the role of import taxes in government revenue, by export pessimism, and by differential treatment of developing countries under GATT. Protection against imports is a burden on the export sector. Trade liberalization has important effects on economic growth and factor productivity. Recent programs of trade liberalization are implemented together with complementary macroeconomic policies to enhance the possibility of sustaining trade policy reforms to be sustained.

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