Trade Openness and Developing Countries’ Vulnerability: Concepts, Misconceptions, and Directions for Research
Posted: 2 Feb 2012
Date Written: January, 31 2012
This work focuses on the welfare costs of exposure to shocks and uncertainty linked to trade openness — a prominent issue in international debate. It contributes by presenting a comprehensive review of the literature on the “destabilizing effects” of trade openness, drawing together studies in different fields. It provides a conceptualization of vulnerability and three promising lines of reasoning (macro, micro, and meso) for future research on the link between trade and vulnerability.
Keywords: vulnerability, trade openness, uncertainty, volatility, crisis transmission, developing countries
JEL Classification: F40, I32, C82, E17, D60
Suggested Citation: Suggested Citation