Document Type : Research Paper
Authors
Abstract
The role of international trade on human development is important for economists. Some studies emphasize that there is a positive link between trade and economic development, while others believe that trade has a negative impact on national sovereignty and indigenous culture of countries. In this paper, we attempt to address this argument by examining the impact of international trade on countries’ social developments as measured by the Human Development Index. We have utilized a System Generalized Method of Moments procedure in a panel data framework, using the data for the 16 countries in the period of 1975- 2009. The results showed that increases in trade are positively associated with increases in the human development, which eventually leads to the social welfare of the society.
JEL classification:F1, O47
Keywords
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