▪ Topic: Is Openness to International Trade Necessarily Beneficial for Welfare and Economic Growth in a Country? ▪ Name: Oluwaseun Fasoranti
Is Openness to International Trade Necessarily Beneficial for Welfare and Economic Growth in a Country?
This essay title asks us whether or not International Trade is beneficial for welfare and economic growth in a country. In the text, we go on to look at a brief introduction of both economic growth and International trade. We then look at the benefits and regressions of openness to International Trade in relation to economic growth in both Developed countries and Less Developed countries. We also see that openness to International Trade is just one of the many factors that lead towards economic and welfare growth. But to conclude, we accept the fact that openness to IT does lead to economic growth among other factors.
KEYWORDS: International Trade, Welfare, Economic Growth, Openness, and Beneficial
“Economic growth is the rate of change of real income or real output”(Begg, Fischer and Dornbusch, 2000. Pg 511). Factors that affect economic growth are thing such as availability of raw materials i.e. land, increased labour, capital, efficiency and openness to IT, through this countries can have technological advancements that help cut the costs of production and so help increase the GDP of countries e.g. China’s investment in Nigeria to help build refineries for the oil industry in return for a percentage of their crude oil is a form of IT. While International Trade is a process whereby countries trade between each other on the basis of specialization whereby countries trade on the basis of availability of cheaper raw materials and other factors of production that lead to cheaper prices.
Many economists favour trade liberalization as they think or argue that a country’s being open to it may lead to economic growth such as Wall (2000),...