This work examines the economic agents, institutions, incentives, competences and other forces that forged a Lebanese economic model known as the 'Merchant Republic' in the aftermath of World War II. Carolyn Gates has identified the broad concept of outward-orientation to describe the Lebanese economy. Dominant economic and political agents sought to develop the economy on the basis of its intermediary role, regional comparative advantage and competitive position in offshore service operations - all of which were viewed as essential to the viability of the small Lebanese state.
This book integrates a theoretical and empirical examination of the Lebanese model and provides data and analysis about its effect on economic growth and structural change during its golden age.

1. Outward Orientation and Lebanon: introductory comments
Outward and inward orientation revisited
Applicability of outward orientation theories to the Lebanese economy
Methodological issues
Organisation

2. The International Market Economy and the Establishment of an Outward-Looking Environment in Lebanon, 1800-1939
European penetration
The development of the Lebanese silk industry
The rise of Beirut
The emergence of a mercantile-financial bourgeoisie
Foreign trade and investment trends
The establishment of direct French control over Lebanon
Policy and institutional changes under French rule: financial system
Balanced budgets and ad hoc fiscal instruments
Tariff policy
Sectoral trends during French rule
Agriculture
Industry
Foreign trade
Beirut as growth pole of trade, finance and services

3. Looking Inward: reversal of economic policy and institutional environment in Lebanon during the Second World War
Expansion of domestic supply
Restructuring to promote autarky
Exchange controls
Agricultural self-sufficiency: response to market forces and bureaucratic intervention
Establishment of import-substitution
Economic effects of the Second World War

4. Profile of Selected Sectors of Lebanese Industry, 1929-46
Textiles and garments
Cement and building materials
Tanning and leather goods
Alcoholic beverages
Match industry
Soap
Electricity

5. The Rise of the Merchant Republic: institutional change and the open economy
Dominant commercial and financial interests
Positive expectations for an open economy
Politics and ideology: minimalist, non-activist state
Content of the Lebanese model
Open economy: free trade and exchange, shifting economic relations, and stabilisation
Deregulation of the economy: free trade and exchange objectives
Dissolution of the Syro-Lebanese Customs Union: promoting Lebanon's openness and independence in the Arab world
Perpetuation of Frebch economic influence
Developing economic relations with the Arab world
Lebanese laissez-faire
Monetary reform and stabilisation
Development policy
Comparative advantage of Lebanese industry and agriculture in regional export markets
Conclusion

6. Outward-oriented Economic Growth and Change, 1946-58
Trade
Expansion of financial services
Growth of other services
Evolution of postwar industry
Industrial renovation and expansion: incentives and constraints
Shift from import-substitution to export production for Middle East markets
Slow movement in traditional agriculture
Agro-export production for regional markets
Conclusion

7. The Lebanese Economic Model: an evaluation
Policy assessment
Fiscal policies and development
Employment
Income distribution
Investment, growth and structural change
Final remarks

Notes
Appendix
Bibliography
Index