Mzumara et al
Greener Journal of World Peace, Security and Development
Vol. 1 (1), pp. 012-017, September 2013.
ISSN: 2354-2365 © 2013 Greener Journals
Manuscript Number: 081613785
Trade Liberalization: Is it a Useful Program for Agricultural and Manufacturing Sectors in Developing Countries?
Macleans Mzumara1, Anna Chingarande*2 &
1,2,3Department of Economics, Bindura University of Science Education, P/Bag 1020, Bindura, Zimbabwe.
Emails: 1macmzumara @ yahoo.com, 3rkarambakuwa @ gmail.com
*Corresponding Author’s Email: apbchings2005 @ yahoo.com
The authors investigated whether trade liberalization is a useful programme for agricultural and manufacturing sectors in the developing countries. A historical approach was used to measure impact. There are mixed results regarding the impact of trade liberalization. The results which show negative impact are generalized without being very exact the nature of impact. The results which show positive impact of trade liberalization have generally based their evidence on real GDP and per capita income growth rates while ignoring other factors which contribute to their growth. Two schools of thought have emerged namely pro-trade liberalization and those against trade liberalization. Indicators are purposely chosen and the results support that school of thought. It is recommended that studies of trade liberalization use a number of indicators to measure impact. That studies should be able to iso;ate other influences on the indicator before making conclusions. There is a need to come up with uniform indicators to measure impact. A developing country should initiate a comprehensive study of its economy before entering zero tariff agreement with developed country.
Developing countries should attract transnational corporations to improve efficiency. Policies which encourage redistribution of incomes should be introduced.
Keywords: Trade liberalization, trade openness, structural adjustment.