(DP 1978-15) Rising Protectionism in Developed Countries and Its Implications for Developing Countries

The paper lays out some of the issues around recent world economic events particularly rising protectionism in developed countries. These issues include export potential of manufactured products of developing countries, the interaction and consequences of developed country policies that restrict trade on developing countries, multilateral trade negotiations, and international trade patterns. To discuss the issues the paper traces factors that have led to rising protectionism, points out manifestations of protectionism, explains the implications for developing countries, and indicate directions for these countries. The paper concludes that the behavior of rising protectionism is detrimental to both developed and developing countries, puts a strain on commitments to free trade and distorts the natural and market process of comparative advantage positions of both types of countries.