Trade openness and world economic development in globalization

Abstract

Neoliberal economic policy has promoted global trade liberalization under the hypothesis that trade liberalization leads automatically to a positive break in the trend of economic growth. This policy action is supported primarily on the comparative advantage theory developed by David Ricardo in the second decade of the nineteenth century. However, the absence of a general increase in GDP to accompany trade liberalization implemented from the eighties in a number of countries shows signs that something has happened in the export model adopted contrary to the expectations promised favorable. Mexico and many other countries are at an impasse, with problems that have worsened with the recent economic crisis that so far, especially in the U.S. and Europe, shows no signs of global recovery.