Is trade good for development? The elusive question

Abstract

This review presents the research paths taken in recent decades in the attempt to identify the causal relationship between international trade and development. It argues that this is a highly empirical issue which the traditional, multi-country studies have not been successful in unraveling. The academic literature found fertile ground in which to question the channels by which trade may affect development and give rise to research with more specific themes. The result is an enormous and diverse range of studies. Some of these lines of research, referencing important texts in the literature, are presented herein. he sharp growth in international trade in the last fifty years inevitably leads to the issue of its impact on the lives of individuals around the world. The academic community has been pouring over this issue for decades. The responses are varied, and no consensus seems to emerge. In fact, the consensus is that what should interest us is not whether international trade is good or bad for development, but rather what type of trade is good for which country. So, answers to how trade may raise the level of development for particular groups within a country and through what channels may international trade contribute to development are more specific issues that lead to a better understanding of the relationship between international trade and development. Thus, the academic literature in the area has over time undergone an expansion regarding not only the volume but also the delimitation of the objects and research * http://dx.