Dynamic Gains from Trade

The post world war II era has been characterized by unprecedented growth in the world economy and progressive reduction in barriers to international trade and investment. The objective of this study is to assess to what extent the observed growth and deepening international economic integration are related. It begins by discussing the concept of dynamic gains from trade. Narrowly defined, dynamic gains are traderelated changes in the long-run rate of productivity growth. Although there is no conclusive evidence that...