International Trade and Economic Development PDF

Trade and Economic Development Presente d by Prem 2190021 Overview Role of Trade in Economic Growth Trade and Poverty Reduction Trade Policies in Developing Countries Role of Trade in Economic...

Trade and Economic Development Presente d by Prem 2190021 Overview Role of Trade in Economic Growth Trade and Poverty Reduction Trade Policies in Developing Countries Role of Trade in Economic Theoretical Foundations Growth 01. Comparative 02. Export-Led Growth 03. Endogenou Advantage Strategy s Growth Theory This theory suggests that This strategy promotes Endogenous growth theory countries should specialize economic growth by highlights the role of in producing goods where focusing on increasing innovation, knowledge, and they have a lower exports. Countries like human capital in driving opportunity cost compared South Korea and Taiwan long-term economic growth. to others, allowing all have used this approach to Trade encourages the nations to benefit from trade industrialize rapidly, transfer of technology and Role of Trade in Economic Empirical Evidence Growth 01. 02. 03. East Asian China’s Economic Diversificati Miracle Transformation on Benefits Countries like South Korea, Taiwan, and Singapore Countries that diversify their Since implementing its rapidly industrialized exports across multiple "Open Door Policy" in through export-led growth, sectors reduce their 1978, China has become a becoming global economic dependence on a single global manufacturing powerhouses by focusing on commodity, leading to more leader, using trade to drive technology, manufacturing, stable growth and increased massive economic growth resilience against global Mechanism s Facilitating Growth Efficiency and Productivity Technology Transfer Scale Economies Investment Flows Trade and Poverty Income Generation and Access to Goods and Services Reduction Employmen t Job Creation Wage Growth Affordable Imports Variety and Quality Empowerment of Marginalized Groups Women’s Employment Rural Development Trade-related industries, such as textiles and manufacturing, often provide jobs for women, giving them economic independence and contributing to gender equality. Export-oriented agriculture helps rural communities by providing income and job opportunities, reducing poverty in these areas and slowing urban migration. Challenges: 1. Inequality Inequality: Trade benefits can be unevenly distributed, sometimes widening the gap between rich and poor or urban and rural 2. Vulnerability to Shocks populations. Vulnerability to Shocks: Economies 3. Displacement Effects heavily dependent on exports are vulnerable to global market fluctuations, such as price drops or demand changes. Displacement Effects: Increased competition from imports can hurt domestic industries, leading to job losses in sectors that are unable to compete globally.  Types of Policies Trade Policies in Developing Tariffs and Import Duties Non-Tariff Barriers Countries Subsidies Trade Agreements Export Promotion Policies  Strategic Use of Trade Policies Infant Industry Protection Diversification Strategies Industrial Policy Integration @reallygreatsite Challenges Faced by Developing Countries Balancing Protection and Openness Compliance with International Standards Limited Bargaining Power Infrastructure Constraints Case Studies China’s Trade Policy Africa’s Regional Integration Initiatives like the AfricanContinental Free China's strategic use of export incentives, investment in infrastructure, and gradual Trade Area (AfCFTA) aim to create larger liberalization have been pivotal in its rise as markets, reduce intra-African trade barriers, a global trade powerhouse. and enhance competitiveness. India’s Trade Vietnam in Global Reforms Value Chains Since the 1991 economic liberalization, India Vietnam has effectively integrated into has progressively reduced tariffs, attracted global value chains, particularly in FDI, and expanded its export sectors, electronics and textiles, through favorable contributing to significant economic growth trade policies and investment in and poverty reduction. manufacturing capabilities. conclusion Trade plays a pivotal role in economic development by fostering growth, reducing poverty, and shaping policy frameworks in developing countries. By leveraging comparative advantages, integrating into global markets, and implementing strategic trade policies, developing nations can enhance their economic prospects and improve the well-being of their populations. However, realizing the full benefits of trade requires addressing challenges such as inequality, vulnerability to external shocks, and infrastructural constraints. Thoughtful and inclusive trade policies, coupled with investments in human capital and infrastructure, are essential for sustainable economic development in the