LIBERALIZATION OF TRADE POLICY AFFECTING IMPORT IN LATIN AMERICA (Liberalizacja importowej polityki handlowej w Ameryce Lacinskie)j

This paper analyses the relationship between liberalization of trade policy and dynamic of real merchandise import of Latin America countries, utilizing models based on panel data. Gross Domestic Product and relative prices are found to be significant determinants of import demand function. The results also show that the reduction of import duties and elimination of other trade distortions have a strong, positive impact on real import growth.