Trade and development: Difference between revisions

Revision as of 06:46, 7 December 2017

Revision as of 06:54, 7 December 2017

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'''[[Trade]]''' can be a key factor in '''[[economic development]]'''. The prudent use of trade can boost a country's [[Economic development|development]] and create absolute gains for the trading partners involved. Trade has been touted as an important tool in the path to development by prominent economists. However trade may not be a panacea for development as important questions surrounding how [[free trade]] really is and the harm trade can cause domestic infant industries to come into playsplay.

==Overview==

The current consensus is that trade, development, and [[poverty reduction]] are intimately linked. Sustained [[economic growth]] over longer periods is associated with [[poverty reduction]], while [[trade]] and growth are linked. Countries that develop invariably increase their integration with the [[global economy]], while [[export-oriented industrialization|export-led growth]] has been a key part of many countries’ successful development strategies.

Continents, countries and sectorsectors that have not developed and remain largely poor have comparative advantage in three main areas:

* natural [[resource exploitation]], i.e. running down of [[natural capital]] such as [[rain forest]] [[timber]];