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Showing posts with label trade openness. Show all posts
Showing posts with label trade openness. Show all posts

October 27, 2016

Part 2. Trade Openness, Income Distribution,
and Income Levels


 “Trade is killing our jobs! We must build a wall! We must abandon international trade agreements!”

Protectionists who want to build walls against imports of foreign goods and services commonly believe that international trade is bad per se, and that more trade is even worse. In reality, however, increased openness to trade, as measured by the ratio of trade to GDP, tends to be associated with higher levels of income and with more equal patterns of income distribution.