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So You Want to Use a Measure of Openness?

In: The Design and Use of Political Economy Indicators

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  • H. Lane David

Abstract

Trade policy is, and has been for a long time, an area of great contention in the public arena. There are many who believe strongly in the benefits of free trade, and there are many who believe with passion that trade policy must be used to protect domestic interests. Despite a large academic literature supporting the idea of a positive relationship between trade openness and economic growth1 and belief by many policymakers that “Openness to trade and more liberal trade policies are associated with faster rates of economic growth both in the United States and abroad,”2 trade restrictions are pervasive even after numerous rounds of GATT (General Agreement on Tariffs and Trade) negotiations. We continue to hear frequent calls from the governments of the United States and other industrialized countries for greater trade liberalization and openness.

Suggested Citation

  • H. Lane David, 2008. "So You Want to Use a Measure of Openness?," Palgrave Macmillan Books, in: King Banaian & Bryan Roberts (ed.), The Design and Use of Political Economy Indicators, chapter 0, pages 15-32, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-61662-2_2
    DOI: 10.1057/9780230616622_2
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