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Can Free Trade Guarantee Gains from Trade?

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  • Moritz Cruz

Abstract

Static and dynamic gains from trade are the reasons why countries embark on the path of free trade, expecting this to promote industrialization and development. There is nothing, however, in the conventional theory of international trade that guarantees that these gains will materialize and even if they do, they may not accelerate industrialization and growth. This is because there are a number of deleterious effects that the same theory omits and/or ignores.

Suggested Citation

  • Moritz Cruz, 2008. "Can Free Trade Guarantee Gains from Trade?," WIDER Working Paper Series RP2008-97, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2008-97
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2008-97.pdf
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    3. Hadili, Abduraawf & Raab, Roman & Wenzelburger, Jan, 2016. "Trade Liberalization in Arab Maghreb Union Countries," MPRA Paper 71123, University Library of Munich, Germany.

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