Trade openness and developing countries’ vulnerability: concepts, misconceptions, and directions for research

This work focuses on the welfare costs of exposure to shocks and uncertainty linked to trade openness—a prominent issue in international debate. It contributes by presenting a comprehensive review of the literature on the “destabilizing effects” of trade openness, drawing together studies in different fields. It provides a conceptualization of vulnerability and three promising lines of reasoning (macro, micro, and meso) for future research on the link between trade and vulnerability.