Export-Promoting Trade Strategy: Issues and Evidence

This article evaluates recent arguments against the adoption of an export-promoting (EP) trade strategy. It reviews past experience with trade strategies, and distinguishes between the old and new export pessimism. The former was based on an (unwarranted) assessment of "natural" or market forces. The latter, by contrast, reflects "man-made" protectionism. This review finds that an EP policy remains the preferred option provided developing countries forcefully join with the industrial countries in strategies to contain protectionist threats and to preserve and expand an open trading system.