nep-tra New Economics Papers
on Transition Economics
Issue of 2007‒10‒27
two papers chosen by
J. David Brown
Heriot-Watt University
  1. Trade, Foreign Investment and Myanmar’s Economic Development during the Transition to an Open Economy By Kudo, Toshihiro; Mieno, Fumiharu
  2. Dual Track Reforms: With and Without Losers By Jiahua Che; Giovanni Facchini
  1. By: Kudo, Toshihiro; Mieno, Fumiharu
    Abstract: Throughout the 1990s and up to 2005, the adoption of an open-door policy substantially increased the volume of Myanmar’s external trade. Imports grew more rapidly than exports in the 1990s owing to the release of pent-up consumer demand during the transition to a market economy. Accordingly, trade deficits expanded. Confronted by a shortage of foreign currency, the government after the late 1990s resorted to rigid controls over the private sector’s trade activities. Despite this tightening of policy, Myanmar’s external sector has improved since 2000 largely because of the emergence of new export commodities, namely garments and natural gas. Foreign direct investments in Myanmar significantly contributed to the exploration and development of new gas fields. As trade volume grew, Myanmar strengthened its trade relations with neighboring countries such as China, Thailand and India. Although the development of external trade and foreign investment inflows exerted a considerable impact on the Myanmar economy, the external sector has not yet begun to function as a vigorous engine for broad-based and sustainable development.
    Keywords: Myanmar (Burma), International trade, Cross-border trade, Foreign direct investment, Economic development, Development cooperation, Foreign investments
    JEL: F14 F21 P28
    Date: 2007–08
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper116&r=tra
  2. By: Jiahua Che; Giovanni Facchini
    Abstract: The dual track approach to market liberalization has been widely recognized as the key to the success of the Chinese economic reform. In this paper we study the effectiveness of this strategy in economic environments where the status quo government control is incomplete. We show that in a dynamic context contractual arbitrage will emerge, potentially resulting in efficiency losses and/or adverse distributional effects. By establishing a necessary and su±cient condition for the dual{track approach to retain its appeal in a dynamic context, our analysis provides a clear guideline to the broader applicability of this reform mechanism.
    Date: 2007–10–15
    URL: http://d.repec.org/n?u=RePEc:esx:essedp:646&r=tra
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