I have conducted a survey of journal articles that have examined the relationship between free trade and economic growth. In particular, I have carefully selected six empirical studies that were published over a ten-year period and critically reviewed, and evaluated these studies in depth. I have also extensively presented and discussed the issues as well as the controversies that are related to the various measures of openness. In a number of the trade-growth empirical studies researchers have made major attempt to identify the relationship between free trade and economic growth. Most of the trade-growth studies show that there is a positive relationship between free trade and economic growth. However, some of these influential studies have been subject to strong criticism, mainly due to a number of methodological shortcomings. As for the million-dollar question: Does free trade advance economic growth? My conclusion is that this question is not yet resolved, because although researchers have devoted considerable efforts to show a positive trade-growth relationship, nevertheless, the methodologies and the measurements applied in these studies have been fragile to the scrutiny of critics.
Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-6393 |
Date | January 2006 |
Creators | Kidane, Frewyeni |
Publisher | Uppsala universitet, Nationalekonomiska institutionen, Uppsala : Nationalekonomiska institutionen |
Source Sets | DiVA Archive at Upsalla University |
Language | English |
Detected Language | English |
Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
Format | application/pdf |
Rights | info:eu-repo/semantics/openAccess |
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