Council for Social and Economic Studies P.O. Box 34143 Washington, DC 20043
socecon@aol.com
Home Electronic Version
(Subscribers Only)
Prices / Subscribe
Recent Back Issues Sample Articles About JSPES

JSPES, Vol. 39, No. 1 (Spring 2014)
pp. 24 –51

Developed vs. Developing Countries and International Trade Liberalization: a Comparative Analysis

Shah M. Tarzi
Aristotle Emami

Bradley University, Peoria, Illinois

This study is intended to provide a comparative empirical profile and analysis of trade liberalization and global integration via trade. Accordingly, we use cross sectional and time-series methods, and quantitatively highlight trade liberalization metrics: notably, export share of GDP (gross domestic product), correlation between exports and income, and document changes in tariff reduction and in the size of exports as a percentage of economic output. In the process comparative data and analysis of two general blocs of countries, developed countries (DCs) and developing countries (LDCs), is offered. The study also presents preliminary observations regarding the distribution of gains from trade liberalization. Further, we elaborate on the theoretical and policy implications of the study’s findings. In terms of key metrics, export share of GDP, correlation between export performance and growth, average annual growth in exports, and the dollar volume of export growth we find significant trade liberalization and concomitant improvement in the position of LDCs, especially during the 1995–2008 period.