Sunday, November 13, 2011

Benefits of trade

The Office of the United States Trade Representative's website (in the Executive Office of the President of the United States) has an interesting link on State-specific benefits of international trade. This outlines the benefits international trade has in terms of jobs, exports and investment in the various States of the US. While literature on the impact of international trade on countries is common, this link is interesting since it is taking the analysis to the state level. This is very relevant since it contextualises the high-level benefits of international trade from the national level to the sub-national level. Normally local and state governments are not impressed by the positing of reduction in trade barriers in international trade as necessarily good as they lead to loss of local jobs and industry. This analysis helps in addressing some of those concerns by highlighting the benefits that actually accrue to the State's local population.

I tried to search for similar analysis in the Indian context but failed to find any, unless I have missed it. It would be useful to have this analysis for the Indian states which would show how States are doing in terms of exports and imports as well as ways they could benefit from the system.

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