This report proposes an action plan for the rationalization of tax structures for Central America. To harmonize tax policies among Central American nations, the report recommends the following: (a) continuing trade liberalization, by reducing thelevel and dispersion of effective trade...

This study extends the gravity model to include a new measure of the trading partners’ location relative to other countries. The proposed measure is close in spirit to the theory of gravity, since it is based on the concept of the world trade center. The measure is statistically significant...

Adherents to the “natural trading partner” hypothesis argue that forming a PTA is more likely to raise welfare if member countries already trade disproportionately with each other. Opponents of the hypothesis claim that the opposite is true: welfare is likely to be higher if member countries...

The unconditional extension of the fruits of trade negotiations under the General Agreement on Tariffs and Trade (GATT) is giving way to bilateral and other discriminatory trade agreements. Led by the United States, GATT has taken a strong position against discrimination: the benefits of...

In the early 1980's, faced with a mounting debt crisis, most highly indebted developing countries increased trade barriers to generate more foreign exchange; but in the last three to four years, they have reversed course. Almost all highly indebted countries have undergone real devaluations and...

Developing countries trying to emerge from recessionary spirals must recognize the importance of public/private interactions in designing growth oriented adjustment programs. They must appreciate the complex impact of fiscal policy on the economy. Turkey is an interesting country for studying...