Rethinking trade and development

We think of trade-driven growth during the era of hyper-globalisation as having created many “growth miracles” since the 1990s. But how did that happen? If we look at what created these miracles more closely, will that help us to understand how the geopolitical and technology shifts of the last decade have affected, and will continue to affect, the relationship between international trade and development? 

Penny Goldberg of Yale and Michele Ruta of the IMF are the authors of a chapter in the forthcoming Handbook of Development that questions many of our assumptions about the role of trade in growth miracles. They tell Tim Phillips about how this engine of development really worked – and why it might not work as well in future.