Structural Trade Theory

Structural trade theory in Global Commerce Policy

In this regard, structural trade theory is: a contentious theory emerging in the 1950s which held that structural forces in international trade impeded the development of countries dependent on the production and export of primary commodities and raw materials. The entries on trade policy are here. Its proponents argued that there was a persistent bias against such producers because of a long-term deterioration in their terms of trade. The proposed solutions included the promotion of South-South trade (trade among developing countries) on a preferential basis. The entries on trade policy are here. It was thought that in this more limited environment developing countries would be relatively more competitive and able to get ready to supply industrialized countries once their industries had developed sufficiently. Preferential access to developed countries for products of export interest to developing countries through a GSP was also advocated. Few of the resulting preferential trade areas became effective enough to make a practical difference, but the structuralists had succeeded in drawing attention to the important issue of trade and development. See also GSTP and UNCTAD.[1]

Structural trade theoryin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Structural trade theory” entry (OAS)

See Also