Trade

Abstract

Abstract This chapter surveys the literature on the relationship between international trade and inclusive growth. It examines claims that the rise in inequality in many countries can be attributed to the concurrent rise in trade competition, especially from EMEs like China, spurring trade tensions and protectionist measures. The chapter investigates the conflicting literature showing the aggregate benefits of trade versus the adverse and persistent impact of trade, especially import competition, on specific industries and local communities. It then reviews the evidence for using trade policies and other complementary policies for adjustment and compensation to those groups adversely affected by trade.