A long-standing debate in economics asks whether trade restrictions help or hinder economic performance. A recent study revisits this question with a clear focus: not on prices or welfare proxies, but on what ultimately matters for policymakers—economic growth. Using multicountry data, the study examines how different types of trade restrictions shape growth outcomes across diverseContinue reading “Do Trade Barriers Slow Growth? What New Evidence Reveals”
Tag Archives: economy
Revisiting Trade Restrictions and Export Purchasing Power
A recent article in the International Economic Journal revisits a classic question in international economics: do trade restrictions actually improve a country’s welfare? Rather than relying on the traditional terms of trade (TOT) — the ratio of export prices to import prices — the study focuses on a more comprehensive indicator, the income terms ofContinue reading “Revisiting Trade Restrictions and Export Purchasing Power”
Rethinking Commodity Dependence: Its Impact on Economic Inequality, Growth, and Human Development
As global markets continue to evolve, the relationship between commodity dependence and various facets of economic development warrants deeper examination. Many countries heavily rely on exports of primary commodities such as oil, minerals, and agricultural products, which can significantly influence their economic trajectories. However, an increasing body of research points to the troubling implications ofContinue reading “Rethinking Commodity Dependence: Its Impact on Economic Inequality, Growth, and Human Development”
The Interplay of Digital Services Trade, Trade Restrictions, and Institutional Quality
In today’s interconnected world, digital services trade has emerged as a cornerstone of international commerce, providing numerous opportunities for innovation and economic growth. With the rapid advancement of technology and digital connectivity, countries can facilitate cross-border transactions for services such as software development, digital marketing, and online education. While digital services trade restrictions might secureContinue reading “The Interplay of Digital Services Trade, Trade Restrictions, and Institutional Quality”
Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power
The lowering purchasing power and the declining middle-income class have recently become rising economic issues in Indonesia. The lower purchasing power is concerning as, according to Statistics Indonesia (Badan Pusat Statistik, BPS) data, more than half of the Indonesian macroeconomic condition is attributed to household consumption, while the middle class has become the backbone ofContinue reading “Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power”
ASEAN’s Regional Economic Integration Amidst the Digital Era
Cross-border transactions involving services include the movement of either the producer, the consumer, or capital for investment purposes. The General Agreement on Trade in Services (GATS) defines cross-border trade in services using four modes of supply: Mode 1 involves the flow of services from one country’s territory to the trade partner’s territory; Mode 2 consistsContinue reading “ASEAN’s Regional Economic Integration Amidst the Digital Era”
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