Document Type



School of Business

Faculty Advisor

Nathanael D. Peach


Trade is an essential component of a country’s economy. The flow of goods and services across national boundaries has become emblematic of the modern global economy. Yet, the effects of trade are not constant across countries. Instead, gains from trade have been observed to be asymmetric across the diverse landscape of political economies. Sharma and Morrissey (2005) for example, suggest that while trade liberalization is generally desirable, it does not guarantee growth. Instead, any impact of trade on an economy is conditional upon the initial economic structure and prevailing policy. This makes sense since countries often differ in terms of structure and what goes into its trade balance. Cross-sectional studies have been divided with regards to trade’s ability to alleviate poverty. Yet they have been scant as to what factors cause such differences. This study intends to bridge that gap. Specifically, it seeks to discover what features of an economy determine its relative gains from trade, and consequently, its impact on development.


Submitted in the course "ECON 410: Introduction to Applied Econometrics"

Included in

Econometrics Commons