The growth impact of trade openness: A comparative analysis of the USA and China

Komla M. Agudze and Favour Olarewaju

The Journal of International Trade & Economic Development, 2022, vol. 31, issue 1, 23-45

Abstract: Given the continuum of views regarding the impact of trade openness on the growth of economies in our globalised world, this paper investigates the comparative case of the USA and China, two of the world’s largest economies and power houses, for the period 1985–2020. We find contradicting growth effects of trade in the US and China, with trade having a mixed or negative effect on the former but a consistently positive effect on the latter, both in the short and long run. We provide some commentary in light of the recent global debates on trade and propose policy recommendations in the context of these countries.

Date: 2022
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DOI: 10.1080/09638199.2021.1965646

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