The empirical relationship between trade and growth is:
A) strong.
B) weak.
C) strong for natural resource-based exports only.
D) nonexistent.

Question

Quizplus · Accepted Answer

The empirical relationship between trade and growth is generally found to be strong. Numerous studies have shown that countries that are more open to international trade tend to have higher growth rates. This is because trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to more efficient allocation of resources, access to larger markets, and the adoption of new technologies and practices.

The Empirical Relationship Between Trade and Growth Is