01705cas a2200241 a 4500 AALejournalIMF010476 230101c9999 xx r poo 0 0eng d 15.00 USD 9781451973136 1020-7635 BD-DhAAL BD-DhAAL International Monetary Fund. Research Dept. IMF Staff papers : Volume 38 No. 3. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (236 pages) IMF Staff Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Trade liberalization in developing countries is frequently opposed on the grounds that, because it is likely to cause a deterioration in the external balance, it may not be a viable policy option for countries facing foreign exchange constraints. Recent literature suggests, however, an ambiguous relationship between tariff changes and the current account. This paper shows that if liberalization involves reducing tariffs on imported intermediate inputs (a reform that has figured prominently in developing countries), then the current account may improve or deteriorate, depending on the level of initial trade distortions and the structure of the economy.[JEL F13, F32, F41]. Mode of access: Internet IMF Staff Papers; IMF Staff Papers ; No. 1991/002 Full text available on IMF http://elibrary.imf.org/view/journals/024/1991/002/024.1991.issue-002-en.xml IMF e-Library