The Economic Journal · 2004 · 455 citations · 68 references
Social SciencesEconomicsEconomic PolicyInternational EconomicsInternational TradeComparative AdvantageEconomic GrowthGlobal TradePolitical Economy Of GrowthTrade LiberalizationTrade PolicyEconomic Growth DynamicsEconomic Growth StrategyEconomic Performance MeasurementInternational Trade Regimes
While methodological challenges and disagreements about the evidence exist, the most plausible conclusion is that trade liberalisation generally induces a temporary (but possibly long‑lived) increase in growth, and that other factors such as policies, investment, and institutions also respond positively to liberalisation. This paper surveys recent literature on trade liberalisation and economic growth. The authors review how trade liberalisation is implemented, highlighting the advantages of simple, transparent trade regimes. The evidence indicates that liberalisation boosts growth mainly through productivity gains, and that simple, transparent regimes further enhance these benefits.
This paper surveys the recent literature on trade liberalisation and economic growth. While there are serious methodological challenges and disagreements about the strength of the evidence, the most plausible conclusion is that liberalisation generally induces a temporary (but possibly long‐lived) increase in growth. A major component of this is an increase in productivity. Part 2 stresses the importance of other factors in achieving growth, such as other policies, investment and institutions, but argues that many of these respond positively to trade liberalisation. It also considers the implementation of liberalisation and notes the benefits of simple and transparent trade regimes.
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