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The emphasis of regional integration in Sub-Saharan Africa should shift from the integration of goods markets to the regional coordination of macroeconnmic and microeconomic policies, the harmonization of administrative rules and regulations, and the joint provision of public goods. Such steps are likely to make Sub-Saharan African markets more attractive to domestic and foreign investors and to improve economic growth.
Regulatory strategies that make sense for industrial countries may not be transferable, unchanged, to developing countries. But developing countries could clearly benefit from reformed supervisory technology, including improved information collection and management.
The low level of trade among Sub-Saharan African countries is actually slightly above what a traditional gravity model predicts.
Differences in the form, function, and scope of regulatory policies are traced to differences in social institutions, in the characteristics of the industries being regulated, and in the regulators' objectives and resources.
Major institutional investors in five industrial countries invest cautiously, and very little, in emerging market securities. But only in Germany are regulations on foreign investment a significant constraint.
The paper examines the changes Mexico's textile and clothing industry is likely to face under NAFTA.
A study of 53 countries during 1980-95 finds that financial liberalization increases the probability of a banking crisis, but less so where the institutional environment is strong. In particular, respect for the rule of law, a low level of corruption, and good contract enforcement are relevant institutional characteristics. the data also show that, after liberalization, financially repressed countries tend to have improved financial development even if they experience a banking crisis. This is not true for financially restrained countries. This paper’s results support a cautious approach to financial liberalization where institutions are weak, even if macroeconomic stabilization has been achieved.
This volume considers the implications of revived interest in regional integration for the world trading system.