Why do trade barriers remain high in developing countries despite the significant potential to drive economic growth through trade?
Advanced economies have mostly removed tariffs and other barriers to trade. By contrast, in many developing countries such barriers remain in spite of the huge potential to drive economic growth through trade. In this VoxDev talk, David Atkin and Amit Khandelwal discuss their new paper on trade in developing economies. They argue that we think about trade policy often through neoclassical models that emphasise perfect competition. Whilst this way of thinking may suit environments in advanced economies, it does not resemble the realities on ground in developing countries.
Read “How distortions alter the impact of international trade in developing countries” by David Atkin and Amit Khandelwal here.