Protectionism Debunked: Free Trade Boosts Developing Nations' Exports
The paper examines whether industrial countries are open to developing countries' exports. It finds that markets were indeed open to imports of manufactures in the 1980s, debunking the myth of protectionism. However, the interactions of trade, growth, and employment in industrial countries have not been problem-free. During periods of low investment and growth, the benefits of free trade may not be fully realized, and competition from low-wage countries can impact labor. Despite challenges, the paper argues against protectionism as a solution, suggesting that industrial economies should focus on improving their competitiveness instead.