Trade Policies and the Highly Indebted Countries

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Abstract
In the early 1980s, faced with a mounting debt crisis, most highly indebted developing countries increased trade barriers to save foreign exchange—but in the last three to four years, they have reversed course. Almost all of these countries have undergone real devaluations, and many have undertaken significant liberalizations, so much so that some (Bolivia, Costa Rica, Jamaica, Mexico, Morocco, and Uruguay) are less protectionist than before the debt crisis.

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