ABSTRACT
Since the mid-1970s protectionist pressures have increased considerably. This has been documented and discussed e.g. in Hindley and Nicolaides (1983) and Corden (1984). International organisations like the GATT, the OECD, the World Bank and the IMF have repeatedly warned against increasing protectionism and its negative effects on the world economy (see e.g. GATT (1985), OECD (1985), World Bank (1985a) and Goldsbrough and Zaidi (1986)). In particular, World Bank (1985a, 1987) emphasises that increased protectionism in industrial countries against developing countries' exports reduces the export earnings that developing countries would otherwise obtain. That is detrimental to their capacity to import and therefore a threat to efficient economic growth. In addition, it has a negative effect on developing countries' capacity to serve their debts and adversely affects their terms of trade. (See also van Wijnbergen, 1985a.) 1
