What is the relationship between the development of trade and the development of technology?
Summary: Economists are generally supportive of trade, because it can increase output and reduce efficiency losses. However, they also believe that trade may negatively affect the level of living standards. [ More important than the level shifts caused by trade is its effect on growth and long-run divergences in standard of living. Such an effect is debated by economists, with Rodriguez and
Rodrik noting that "the nature of the relationship between trade policy and economic growth remains very much an open question." Further, Rodrik, Subramanian, and Trebbi argue that "once institutions are controlled for, trade is almost always insignificant" in determining income. ]
There are no new answers.