Development and Trade: Empirical Evidence

Course Outline

International Trade

Course (61 videos)

Development and Trade: Empirical Evidence

How do we know that trade is good for economic development? This video covers a few natural experiments, comparing GDP in countries that face high trade barriers to those with relatively free trade. Some of these experiments include: the difference in GDP between land-locked countries and those with access to coasts; how the closing of the Suez Canal in 1967 affected GDP in certain countries; how trade liberalization in China in 1978 led to a boom in economic growth; and how India's service sector has taken off thanks to trade. This video also covers sources of growth from trade beyond comparative advantage, including how competition spurs efficiency and productivity; how investment differs before and after trade liberalization; and how increases in knowledge and ideas affect productivity.

Teacher Resources


Verified Available Languages

Thanks to our awesome community of subtitle contributors, individual videos in this course might have additional languages. More info below on how to see which languages are available (and how to contribute more!).

How to turn on captions and select a language:

  1. Click the settings icon (⚙) at the bottom of the video screen.
  2. Click Subtitles/CC.
  3. Select a language.


Contribute Translations!

Join the team and help us provide world-class economics education to everyone, everywhere for free! You can also reach out to us at [email protected] for more info.

Submit subtitles




We aim to make our content accessible to users around the world with varying needs and circumstances.

Currently we provide:

Are we missing something? Please let us know at [email protected]


Creative Commons

Creative Commons License

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The third party material as seen in this video is subject to third party copyright and is used here pursuant
to the fair use doctrine as stipulated in Section 107 of the Copyright Act. We grant no rights and make no
warranties with regard to the third party material depicted in the video and your use of this video may
require additional clearances and licenses. We advise consulting with clearance counsel before relying
on the fair use doctrine.