Economic Development, Part 2: Reducing Trade Barriers to Close the Gap between Rich and Poor Countries

November 24, 2015

If barriers to trade are removed, capital goods flow more freely across countries; this benefits all parties because they all can use their resources more efficiently. The removal of trade barriers could close the income gap between rich and poor countries by 50 percent, according to research conducted by economist B. Ravikumar and his colleagues. The video is 4 ½ minutes long.

To learn more:

Read the working paper at https://research.stlouisfed.org/wp/more/2017-006.

Economists and other experts from the St. Louis Fed talk about their research, economics-related topics in the news and issues specifically related to the Fed. Views expressed are not necessarily those of the Federal Reserve Bank of St. Louis or of the Federal Reserve System.

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