Dynamics of Growth in Foreign Trade in Transitional Economies

The study reviews the approach to trade policy in early development research and evolution of thoughts integrating the economic and structural reforms in transitional economies. The discussion in the paper is focused in reference to the member countries of Central and Eastern European countries, emerging Asian countries, Mercosur and prospecting countries of Latin America to join the trade bloc. The aspects of trade and growth and problems of Balance of Payments and their relation with macroeconomic policy have also been discussed in the study. Further, this study analyzes economic integration between two economiesone central, with a large local market, and the other peripheral, with a small local market.