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Palgrave Dictionary of Emerging Markets and Transition Economics pp 393–412Cite as

Palgrave Macmillan

Trade Liberalization

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Abstract

Trade liberalization is the removal of tariff and non-tariff barriers in trade, basically international. This has significant macroeconomic and distributional effects. The Heckscher-Ohlin Trade Theorem is the basic theoretical foundation of trade liberalization. The Stolper-Samuelson Theorem, Factor Price Equalization Theorem, and Rybczynski Theorem also have made contribution in the theory of trade openness.

Several studies exist in analysing distributional impacts of trade openness. These studies have cross-country comparisons, country-specific partial analysis, and general equilibrium analysis. Although it does not have any robust conclusion, general system approach is more comprehensive in studying different facets of trade integration. More recent studies reveal that trade liberalization of the developing world is growth enhancing; however, economic restructuring is deemed essential in making the impacts pro-poor.

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Authors
  1. Sanjaya Acharya
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Editor information

Editors and Affiliations

  1. Bournemouth University, UK

    Jens Hölscher (Professor of Economics and Head of Department) (Professor of Economics and Head of Department)

  2. Freie University Berlin, Germany

    Horst Tomann (Jean Monnet Professor for European Economic Policy) (Jean Monnet Professor for European Economic Policy)

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© 2015 Sanjaya Acharya

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Acharya, S. (2015). Trade Liberalization. In: Hölscher, J., Tomann, H. (eds) Palgrave Dictionary of Emerging Markets and Transition Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-37138-6_21

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