Publication

This paper analyzes the effects of market liberalization on developing countries. It finds that middle-income developing countries stand to gain more because the commodity composition of their exports is such that they will gain substantially in large commodity markets, while lower-income countries need additional help to take advantage of revised opportunities in smaller or niche markets. The paper further examines whether and how smaller developing countries' agricultural production systems can benefit from participation in trade, in terms of acquiring practical skills and techniques, as well as from the macroeconomic improvement brought about by adopting sound trade policies and practicing good governance.