ABSTRACT
Although there remain important controversies in the area, conceptual differences have narrowed to the following. First, although it is generally recognized that there is a positive association between exports and overall economic growth, there are growing doubts as to the direction of causation and, particularly, as to whether the association is related to specific policies (Prichett 1991; World Bank 1991: ch. 5; Harrison 1991; Helleiner 1993, 1994). Second, there is now a consensus that there is no simple link between trade orientation and policies and productivity performance (Pack 1988; Rodrik 1992; Tybout 1992; Helleiner 1994). Third, it is recognized that traditional structural adjustment packages, particularly those implemented since the mid-1980s, give rise to poor supply responses under conditions characterized by the underdevelopment of government institutions and infrastructure, shortages of entrepreneurial and managerial abilities and of trained labour, and poorly developed input supply lines-conditions which are typical of many low-income and even some middle-income countries (Thomas et al. 1990; Thomas and Nash 1991: ch. 3; Helleiner 1992).
