THE RELATION BETWEEN OPENNESS TO TRADE AND ECONOMIC GROWTH
THE RELATION BETWEEN OPENNESS TO TRADE AND ECONOMIC GROWTH

Summary/Abstract: International trade has been a major driver of global growth and prosperity over the last century. The paper aims to provide an analysis on the link between openness to trade and economic growth. The empirical literature has taken one of two vantage points. The first one is to analyze the correlation between openness and growth in data sets that cover a large section of developing and developed countries, in the tradition of crosscountry growth empirics. The second one is to concentrate on country or region-level analytical case studies of economic growth. We believe that this framework will contribute to understanding why certain developing countries have made progress, while others have not. Progress has been very impressive for a number of developing countries in Asia and, to a lesser extent, in Latin America. But progress has been less rapid for Africa and the Middle East.

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