Economics, Econometrics and Finance
4 years ago

Global trade boosts income for wealthy and open countries, study finds.

International Economics and Economic Policy
Trade and economic development: global causality and development- and openness-related heterogeneity
Thomas Gries, Margarete Redlin

Paper Summary

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The study looked at how trade affects a country's income level. They found that there is a positive relationship between trade and income in both the short-term and long-term. However, this relationship is stronger for high-income countries and those with more open trade policies.