Comments on: PNG: Trade Policy and Trade Agreements http://www.eastasiaforum.org/2009/07/21/png-trade-policy-and-trade-agreements/ Economics, Politics and Public Policy in East Asia and the Pacific Sun, 12 Feb 2012 22:50:38 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Ron Duncanhttp://www.eastasiaforum.org/2009/07/21/png-trade-policy-and-trade-agreements/comment-page-1/#comment-44455 Ron Duncan Thu, 23 Jul 2009 22:44:25 +0000 http://www.eastasiaforum.org/?p=5817#comment-44455 I did over simplify Rodrik's argument but in the sense that running simple correlations between trade opening and economic growth does not point to a direct positive relationship. Suggesting, as Robert does, that two observations, China and India, provide sufficient evidence of the relationship is not good enough. Rodrik is not denying that there may be a positive relationship but that unless other circumstances prevail, such as enabling institutions, trade opening may not have a positive impact on economic growth. I did over simplify Rodrik’s argument but in the sense that running simple correlations between trade opening and economic growth does not point to a direct positive relationship. Suggesting, as Robert does, that two observations, China and India, provide sufficient evidence of the relationship is not good enough. Rodrik is not denying that there may be a positive relationship but that unless other circumstances prevail, such as enabling institutions, trade opening may not have a positive impact on economic growth.

]]> By: Robert Tuliphttp://www.eastasiaforum.org/2009/07/21/png-trade-policy-and-trade-agreements/comment-page-1/#comment-44253 Robert Tulip Thu, 23 Jul 2009 07:52:02 +0000 http://www.eastasiaforum.org/?p=5817#comment-44253 Lincoln Fung seems to have identified an over-simplification in Ron Duncan's use of Rodrik's argument. The correlation between trade openness and increased growth is strong, as shown in the movement of countries such as China and India from closed to open trade policies. Lincoln Fung seems to have identified an over-simplification in Ron Duncan’s use of Rodrik’s argument. The correlation between trade openness and increased growth is strong, as shown in the movement of countries such as China and India from closed to open trade policies.

]]> By: Lincoln Funghttp://www.eastasiaforum.org/2009/07/21/png-trade-policy-and-trade-agreements/comment-page-1/#comment-43806 Lincoln Fung Tue, 21 Jul 2009 23:56:33 +0000 http://www.eastasiaforum.org/?p=5817#comment-43806 It is discouraging to hear that "there is no convincing evidence of a positive relationship between trade openness and increased growth". The comparative advantage theories of trade are one of the most agreed areas in economics by economists, but now it is in question. But on the other hand, "other factors, particularly so-called ‘institutional’ factors, are important in whether removing trade restrictions leads to faster growth", we are hearing. Is this another area of the conflicts between micro and macro economics? Does that mean we need a macro intervention of the type of traditional macro economics by government? Economics is complex and increasingly becomes more so, it seems. Education and re-education of economics. It is discouraging to hear that “there is no convincing evidence of a positive relationship between trade openness and increased growth”. The comparative advantage theories of trade are one of the most agreed areas in economics by economists, but now it is in question.

But on the other hand, “other factors, particularly so-called ‘institutional’ factors, are important in whether removing trade restrictions leads to faster growth”, we are hearing. Is this another area of the conflicts between micro and macro economics? Does that mean we need a macro intervention of the type of traditional macro economics by government?

Economics is complex and increasingly becomes more so, it seems. Education and re-education of economics.

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