Sebastian Edwards reviews the literature on trade policy in developing countries, evaluating the extent to which empirical evidence supports the view that more open and outward-oriented economies have outperformed those with restrictive trade regimes. He analyzes the methodology used in this literature, the techniques implemented, and the conceptual and theoretical models developed to investigate the relationship between trade orientation and growth. Edwards highlights the shift in views regarding protectionist policies, which was influenced by academic literature. He categorizes modern empirical work on trade policy and growth into two broad categories: large-scale multi-country studies and econometric studies. He reviews these studies and concludes with an overall evaluation of the current state of affairs in this field, and a discussion on the recently emerging analyses based on the new theories of endogenous growth. Edwards also provides some reflections on directions for future research. He discusses the importance of trade liberalization, the role of devaluations in trade liberalization, and the effects of trade orientation on economic performance. He also presents two case studies: Chile and Korea, which provide interesting examples of the evolution of trade policy. The paper concludes with a discussion on the effects of trade liberalization on growth and the challenges in measuring trade orientation.Sebastian Edwards reviews the literature on trade policy in developing countries, evaluating the extent to which empirical evidence supports the view that more open and outward-oriented economies have outperformed those with restrictive trade regimes. He analyzes the methodology used in this literature, the techniques implemented, and the conceptual and theoretical models developed to investigate the relationship between trade orientation and growth. Edwards highlights the shift in views regarding protectionist policies, which was influenced by academic literature. He categorizes modern empirical work on trade policy and growth into two broad categories: large-scale multi-country studies and econometric studies. He reviews these studies and concludes with an overall evaluation of the current state of affairs in this field, and a discussion on the recently emerging analyses based on the new theories of endogenous growth. Edwards also provides some reflections on directions for future research. He discusses the importance of trade liberalization, the role of devaluations in trade liberalization, and the effects of trade orientation on economic performance. He also presents two case studies: Chile and Korea, which provide interesting examples of the evolution of trade policy. The paper concludes with a discussion on the effects of trade liberalization on growth and the challenges in measuring trade orientation.