ABSTRACT
WHY COUNTRIES TRADE The role of international trade in economic development was one of the first questions ever addressed by economists and has been hotly debated throughout history (see Box 16-1). Today, despite some views to the contrary, most scholars agree that relatively open trade is helpful for successful economic development, and that government trade restrictions generally make growth slower and less sustainable. In this chapter, we ask why open trade facilitates growth, and also why so many governments choose to restrict trade despite its potential economic benefits.
