Do liberal trade policies promote trade openness?
Turan Subasat
Abstract
Turan Subasat
Abstract
Although trade liberalization and trade openness are assumed to be strongly associated with each other and often used interchangeably, the empirical evidence has not been forthcoming. This article is an attempt to fill this gap. By investigating the link between trade openness and trade restrictions, it argues that while a negative link between various types of trade restrictions and trade openness is evident, the relationship is weak, statistically not always significant and there is no clear evidence that the removal of trade restrictions (trade‐liberalization) invariably leads to improved trade openness.
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Although trade liberalization and trade openness are assumed to be strongly associated with each other and often used interchangeably, the empirical evidence has not been forthcoming. This article is an attempt to fill this gap. By investigating the link between trade openness and trade restrictions, it argues that while a negative link between various types of trade restrictions and trade openness is evident, the relationship is weak, statistically not always significant and there is no clear evidence that the removal of trade restrictions (trade‐liberalization) invariably leads to improved trade openness.
Key concepts: Openness to experience, Economics, Free trade, Trade barrier, International economics, Economic integration, International free trade agreement, Commercial policy