Trade fears threaten market integration
Trade integration has been a driver of rising per capita incomes around the globe. While inequality has been rising within countries, the income divide across countries has fallen significantly, supported by an open global trade regime that allows firms to exploit national comparative advantages. The global trade engine is now sputtering. Trade growth post-2008 has been anaemic compared to the average in recent decades. Efforts to cooperate on new trade rules in the WTO have gone nowhere, reflecting both the “rise of the rest,” especially China other Asian nations, and ... [ read more ]
By Bernard M. Hoekman
Co-Director of the research Area “ Global Economics: Trade, Investment and Development ”.