Globalisation, Trade & Development

General

You will find the brief question and some useful readings overleaf. In addition to

these readings, you are encouraged to refer to the subject materials for Topics 1-3 on the guide in answering the question.

There is no need to find additional sources, but you are free to do so if you feel so inclined.

Word Limit

The word limit for this brief is 1,250 words. This word limit is strict. The essay title/title page and the bibliography are excluded from the word count. Everything else, including footnotes, counts towards the world limit.

Brief Question

”Both economic theory and empirical evidence suggest that free trade between countries raises their real income.” Discuss.

(Maximum no. of words: 1,250)

Suggested Further Readings

Bernhofen, D. M., and J. C. Brown, 2005. “An Empirical Assessment of the

Comparative Advantage Gains from Trade: Evidence from Japan,” American

Economic Review, Vol. 95, No. 1, pp. 208-225.

Deardorff, A. V., 2005. “How Robust is Comparative Advantage?,” Review of

International Economics, Vol. 13, No. 5, pp. 1004-1016.

Irwin, D. A., 2005. “The Welfare Costs of Autarky: Evidence from the Jeffersonian

Trade Embargo, 1807-09,” Review of International Economics, Vol. 13, No. 4,

pp. 631-645.

Irwin, D. A., and M. Terviö, 2002. “Does Trade Raise Income? Evidence from the

Twentieth Century,” Journal of International Economics, Vol. 58, No. 1, pp.

1-18.

Krugman, P. R., 1993. “The Narrow and Broad Arguments for Free Trade,” American

Economic Review Papers & Proceedings, Vol. 83, No. 2, pp. 362-366.

Pascali, L., 2014. “The Wind of Change: Maritime Technology, Trade and Economic

Development,” Working Paper, University of Warwick and Universitat

Pompeu Fabra.

Samuelson, P. A., 1938. “Welfare Economics and International