The evolution of economic theory in explaining the positive Impact of free trade on a country's economic growth

Abstract

Free trade is a doctine that promotes the free movement of goods between countries.

Several classical theories have celebrated free trade as an economic policy in order to achieve the expected economic growth : theories of Adam smith, Ricardo, HOS, Leontief.

But over the years other more contemporary throries have emerged which highlight the benefits of free trade to help national businesses survive and deal with unemployment : theories of Vernon, Krugman, Linder.

Therefore the purpose of this article is to analyze to what extent free trade can be a factor in the economic growth of a country ? And how economic theories could explain its importance ?

In the first part we will explain the advantages of free trade for the liberal economists to present in the second part the new theories which celebrate free trade.