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Trade Restrictions Impact on the Economic Growth of Developing Countries
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

International trade and trade liberalisation are important for developing countries to increase their economic growth. A lot of countries are still using trade restrictions, even as it is sometimes seen as detrimental to economic growth. This thesis analyses the effect of trade restrictions on the economic growth of developing countries using the fixed effects estimation technique and two different trade openness measures. A set of control variables to account for the effect of government efficiency, market size, physical capital and level of human capital on economic growth are included. The results show that trade restrictions can have positive, but diminishing effect on the economic growth of developing countries. Government effectiveness and the level of economic development were shown to be important factors in evaluating the effect of trade restrictions on economic growth. It was shown that countries with high levels of government effectiveness and countries with low levels of income benefited more from trade restrictions than others.

Place, publisher, year, edition, pages
2016. , 52 p.
Keyword [en]
Developing Countries, International Trade, Trade Openness, Trade Liberalisation, Trade Restriction, Tariff, Import Duties, Economic Growth, Income Level, Government Indicator, Institutional Performance
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-189438OAI: oai:DiVA.org:kth-189438DiVA: diva2:946029
Supervisors
Examiners
Available from: 2016-07-11 Created: 2016-07-04 Last updated: 2016-07-11Bibliographically approved

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