OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Trade and Growth

Still Disagreement about the Relationships

The relationships between trade and growth have long been a subject of considerable controversy among economists. In the early post-World War II period, many economic leaders concluded that protective trade policies stimulated growth, and import substitution policies were widely adopted by developing countries. By the 1980s, however, country-specific and general cross-country analyses had demonstrated the failure of the import substitution approach, and consequently export-oriented policies were widely adopted. While subsequent cross-country studies have generally indicated the growth effectiveness of outward-looking policies, recent criticisms of these studies (by Rodriguez and Rodrik, 1999, in particular) have called this conclusion into question ...


Keywords: trade policy, trade and growth, economic development
JEL: F13: International Economics / Trade / Trade Policy; International Trade Organizations; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; F43: International Economics / Macroeconomic Aspects of International Trade and Finance / Economic Growth of Open Economies
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