Development and Trade: Empirical Evidence
3,476 views · Published 1 July 2015 · 14:36 · Indexed 6 November 2026
Channel: Marginal Revolution University · 2015 · Education
How do we know that trade is good for economic development? This video covers a few natural experiments, comparing GDP in countries that face high trade barriers to those with relatively free trade. Some of these experiments include: the difference in GDP between land-locked countries and those with access to coasts; how the closing of the Suez Canal in 1967 affected GDP in certain countries; how trade liberalization in China in 1978 led to a boom in economic growth; and how India's service sector has taken off thanks to trade. This video also covers sources of growth from trade beyond comparative advantage, including how competition spurs efficiency and productivity; how investment differs before and after trade liberalization; and how increases in knowledge and ideas affect productivity. International Trade course: http://mruniversity.com/courses/international-trade Ask a question about the video: http://mruniversity.com/courses/international-trade/development-and-trade-empirical-evidence#QandA Next video: http://mruniversity.com/courses/international-trade/cultural-diversity-critique-markets Help us caption & translate this video! http://amara.org/v/Gm0N/
