Trade and Industrialization in Developing Agricultural Economies


Athanasios Vamvakidis ; Sergei Dodzin

Publication Date:

October 1, 1999

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate


This paper examines the impact of international trade on industrialization in developing agricultural economies. The findings show that developing agricultural economies that increased their openness during 1970-95 experienced an increase in their share of industrial production at the expense of agricultural production. This is in contrast to what many policymakers in these economies have often argued when trying to promote industrialization by restricting trade. The paper presents an infant industry model with learning effects from imports of manufacturing products that is consistent with the supporting empirical results.


Working Paper No. 1999/145



Publication Date:

October 1, 1999



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