Trade Liberalization Boosts Imports and Exports, but Impacts on Trade Balance Unclear
The article explores how trade liberalization affects imports, exports, and overall trade balance in developing countries. By analyzing different measures of trade liberalization dates, the researchers discovered that trade liberalization generally boosts imports and exports. However, while some studies suggest that trade liberalization could harm the trade balance, this research found mixed evidence for this negative impact. The findings indicate that the relationship between trade liberalization and the trade balance is not as straightforward as previously thought.