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Trade Liberalization and the International Distribution of the Gains from Growth

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Globalization, Growth and Sustainability

Part of the book series: Recent Economic Thought Series ((RETH,volume 58))

Abstract

Is international trade an “engine of growth”? Do trade liberalization and increased openness lead to higher rates of economic expansion? This has been one of the most controversial issues in international economics over the years. From Adam Smith and John Maynard Keynes to Flans Singer and Raul Prebisch, the debate between pro-traders and protectionists has raged over the years.

One of the most controversial issues in international economics over the years has been whether trade liberalization fosters or hinders economic growth. This paper studies the effects of trade liberalization on economic growth focusing on the ways through which opening an economy to trade affects technical change. The discussion first centers on the empirical literature establishing the connections between openness, technological change and growth. The analysis then moves to examine the theoretical mechanisms linking trade and growth. The paper adopts an endogenous growth framework in assuming that technological change is not exogenous but is affected instead by economic parameters, one of which is openness.

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Author information

Authors and Affiliations

  1. Columbia University, USA

    Francisco L. Rivera-Batiz

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  1. Francisco L. Rivera-Batiz
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Editor information

Editors and Affiliations

  1. St. Thomas University, Fredericton, New Brunswick, Canada

    Satya Dev Gupta

  2. University of Toronto, Toronto, Ontario, Canada

    Nanda K. Choudhry

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Rivera-Batiz, F.L. (1997). Trade Liberalization and the International Distribution of the Gains from Growth. In: Gupta, S.D., Choudhry, N.K. (eds) Globalization, Growth and Sustainability. Recent Economic Thought Series, vol 58. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6203-0_3

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  • DOI: https://doi.org/10.1007/978-1-4615-6203-0_3

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-7844-0

  • Online ISBN: 978-1-4615-6203-0

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