Economics and Finance

   

Some Options for Maintaining the Positive Effects of Trade and Addressing Negative Effects

Authors: Piero Benazzo

The analysis looks into how trade would act as a communicating vessel which diffuses positive effects of increase in productivity. In addition, this tends to communicate and diffuse dynamics of increased inequalities. Increase in inequalities would bring to a hidden effect due to a dual economy differential inflationary dynamics between the subsistence sector and the rest of the economy. These would hide an underestimation of inequality and would involute into further increase in inequalities. This would eventually decrease the market size for selling to a larger degree than the increase in market size thanks to improved productivity. A frame of solution proposed would be to keep the positive effects of trade and find a new deal for addressing its negative effects. This would mean decreasing inequality. One general frame for such deal in trade would be to impose duties commensurate to the differential inequality between importer and exporter’s country. In addition, to contribute reabsorbing inequality, the collected duties on imports could be sent back to the exporting countries, on the condition that they be used for decreasing inequalities.

Comments: 21 Pages.

Download: PDF

Submission history

[v1] 2020-04-16 00:55:08
[v2] 2020-04-30 19:18:14

Unique-IP document downloads: 449 times

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