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Free Trade: Old and New Challenges

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Author Info
Bhagwati, Jagdish
Abstract

This paper analyzes the old and new challenges to the theory and policy of free trade. The old challenges have sought to undermine the case for free trade by citing one or another type of market imperfection. Thus, the postwar period has seen two such challenges: factor market imperfections were analyzed in the 1950s to 1970s, product market imperfections in the 1980s. The new challenges are twofold. One comes from the demands for fair trade as a precondition for free trade; the other from the concern that free trade, while efficient, immiserizes the unskilled in the richer countries. Copyright 1994 by Royal Economic Society.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 104 (1994)
Issue (Month): 423 (March)
Pages: 231-46
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Handle: RePEc:ecj:econjl:v:104:y:1994:i:423:p:231-46

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  1. Zeshan Atique & Mohsin Hasnain Ahmad & Usman Azhar, 2004. "The Impact of FDI on Economic Growth under Foreign Trade Regimes: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 707-718. [Downloadable!]
  2. Klaus, WAELDE & Christina, WOOD, 2004. "The Empirics of Trade and Growth : Where are the Policy Recommendations ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
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  3. Elvira Sapienza, 2009. "FDI and Growth in Central and Southern Eastern Europe," Quaderni DSEMS 12-2009, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia. [Downloadable!]
  4. James P. Feehan, 1996. "Trade Liberalization, Economic Integration And National Public Goods," International Economic Journal, Korean International Economic Association, vol. 10(2), pages 51-63, June. [Downloadable!] (restricted)
  5. Do, Quy-Toan & Levchenko, Andrei A., 2004. "Trade and financial development," Policy Research Working Paper Series 3347, The World Bank. [Downloadable!]
  6. Berggren, Niclas & Jordahl, Henrik, 2003. "Does free trade really reduce growth? Further testing using the economic freedom index," Ratio Working Papers 25, The Ratio Institute. [Downloadable!]
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  7. Palle S Andersen & Lam San Ling, 1994. "Discussion of 'Openness and Growth'," RBA Annual Conference Volume, in: Philip Lowe & Jacqueline Dwyer (ed.), International Intergration of the Australian Economy Reserve Bank of Australia. [Downloadable!]
  8. Klaus Wälde & Pia Weiss, 2004. "International Competition, Slim Firms and Wage Inequality," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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