Trade as an Engine of Economic Growth

Trade as an Engine of Economic Growth-

The Role of Trade in Economic Development

1. The Static Effect of Trade on Economic Development

i. Employment Generation

ii. Export Instability

iii. Adverse Terms of Trade

iv. Greater Dependency

v. Vent for Surplus

2. The Dynamic Effects of Trade on Economic Development

Promotion of Infant Industries

Other Dynamic Influences

Trade as a Hindrance to Growth

i. Externalities

ii. Differential Impact of Trade

iii. Variation in Returns to Scale

iv. Market Imperfections and Government Policy

v. Unequal Distribution of Gains from Trade

Immeserising Growth

Dutch Disease