Costs and benefits of trade liberalization

Hasan, Arsalan (2010): Costs and benefits of trade liberalization.

Abstract

Conventional economic theory advocates trade liberalization, and ultimately free trade because its benefits are said to outweigh its costs. This paper states the arguments for and against the liberalization of trade and then analyzes the case of Pakistan's trade liberalization. Some recommendations are also put forward for trade liberalization to be successful in developing economies.

• Item Type: MPRA Paper
• Language: English
• Keywords: trade liberalization; free trade; costs and benfits; pakistan trade
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F0 - General; F - International Economics > F1 - Trade

References

1.Dominick Salvatore, International Economics, ninth edition, p 303;

2.Moritz Cruz, ‘Can Free Trade Guarantee Gains from Trade?’, United Nations University - World Institute for Development Economics Research (Research Paper No. 2008/97), p 3;

3.Rizwana Sidduqui and A. R. Kemal, Remittances, Trade Liberalization, and Poverty in Pakistan: the Role of Excluded Variables in Poverty Change Analysis, PIDE Working Papers (2006:1), p 5, and WTO World Tariff Profiles, 2006, 2008 and 2009;

4.Government of Pakistan, Economic Survey of Pakistan, 2009-10, p 90, table 7.1 (export performance, major categories);

5.World Bank, Databank (online);

6.World Bank, Databank, (online), average calculated using available statistics;

7.Moritz Cruz, ‘Can Free Trade Guarantee Gains from Trade?’, United Nations University - World Institute for Development Economics Research (Research Paper No. 2008/97), p 19.