Benefits of trade liberalization and its contribution to economic growth
Benefits of trade liberalization and its contribution to economic growth

Summary/Abstract: Nowadays trade liberalization is the most popular economic policy of developed and developing countries. Usually, high and sustainable economic growth, combined with a greater opening of international trade is the main goal of economic policy in almost every country regardless of its degree of development. Therefore the paper perceive existing benefits of trade liberalization and its effects on economic growth in the world and particularly in a developing country like China. The paper concludes that trade liberalization promotes economic growth and produces a number of potential benefits (efficient use of resources, encourage competition, facilitating and increasing the flow of ideas, knowledge and technology, etc.) through a number of channels. Trade liberalization significantly encourages foreign trade and cross-border financial flows, a greater volume of output and specialization, which ultimately leads to higher economic growth. The paper also indicates that most of the effects of trade liberalization are positive, but that they are influenced by many individual factors of each country and its other macroeconomic policies and conditions.

• Details
• Contents