|
A
world with "FREE TRADE": Trade Liberalization |
|
Globalization has several implications for the
developing countries. |
International trade
has been growing at a much faster pace (6% since
1990s) than world output. It was claimed that the
economies that have adopted on open trade regime
were able to create competitive industries, simulate
domestic and foreign investment, exploit economies
of scale and facilitate technology transfer with the
adoption of best-practice techniques.
Others also claim that the completion of the Uruguay
Round as the most comprehensive package of trade
liberalization to date is anticipated to further
enhance economic growth. The growth in world output
in 1994 is 3.1% against growth rates of 1.7% and
2.3% percent in 1992 and 1993 respectively. Behind
this is a 7.2% surge the volume of world trade in
1994 against growth rates of 4.7 %and 4%
respectively in 1992 and 1993. |
| |
|
Summary of World Output ( Annual Percentage
change ) |
|
|
Ten Year Average
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
1985-94
|
1995-2004
|
World
|
3.3
|
3.6
|
3.7
|
4
|
4.2
|
2.8
|
3.6
|
4.8
|
2.4
|
3
|
3.2
|
4.1
|
Advanced
Economies
|
3
|
2.7
|
2.8
|
3
|
3.5
|
2.7
|
3.4
|
3.9
|
1
|
1.8
|
1.8
|
2.9
|
U.S.A
|
2.9
|
3.2
|
2.7
|
3.6
|
4.4
|
4.3
|
4.1
|
3.8
|
0.3
|
2.4
|
2.6
|
3.9 |
Euro Area
|
-
|
2
|
2.2
|
1.4
|
2.3
|
2.9
|
2.8
|
3.5
|
1.5
|
0.9
|
0.5
|
1.9
|
Japan
|
3.4
|
1.3 |
1.8
|
3.5
|
1.9
|
-1.1
|
0.2
|
2.8
|
0.4
|
0.2
|
2
|
1.4
|
Other
Advanced Economies
|
3.8
|
3.3
|
4.3
|
3.6
|
4.2
|
1.9
|
4.8
|
5.1
|
1.6
|
3
|
1.9
|
3.1
|
Developing
Countries
|
5.2
|
3.3
|
4.3
|
3.6
|
4.2
|
1.9
|
4.8
|
5.1
|
1.6
|
3
|
1.9
|
3.1
|
Regional Group
|
Africa
|
1.9
|
3.6
|
3
|
5.6
|
3
|
3.2
|
2.7
|
3
|
3.7
|
3.1
|
3.7
|
4.8
|
Developing
Asia
|
7.7
|
6.6
|
9
|
8.3
|
6.6
|
4
|
6.2
|
6.8
|
5.8
|
6.4
|
6.4
|
6.5
|
Middle East
& Turkey
|
3
|
4.2
|
4
|
5.3
|
6.1
|
3.7
|
0.9
|
6
|
2
|
4.8
|
5.1
|
4.6
|
Western
Hemisphere
|
3.1
|
2.2
|
1.8
|
3.6
|
5.2
|
2.3
|
0.2
|
4
|
0.7
|
-0.1
|
1.1
|
3.6
|
|
