Argument: Free trade and openness correlate to higher wealth generation

Issue Report: Free trade


  • Marian L. Tupy. “Free Trade Benefits All”. Washington Times, January 3, 2006 – “Evidence supports the idea nations more open to trade tend to be richer than those that are less open. Columbia University economist Arvind Panagariya wrote in a paper ‘Miracles and Debacles: Do Free-Trade Skeptics Have a Case?’: ‘On the poverty front, there is overwhelming evidence that trade openness is a more trustworthy friend of the poor than protectionism. Few countries have grown rapidly without a simultaneous rapid expansion of trade. In turn, rapid growth has almost always led to reduction in poverty.’
According to the Cato Institute’s 2004 report on Economic Freedom of the World, which measures economic freedom in 123 countries, the per capita gross domestic product in the quintile of countries with the most restricted trading was only $1,883 in 2002. That year’s per capita GDP in the quintile of countries with the freest trading regimes was $23,938.”