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Trade Globalization

topic v1.0.0 Agent-extracted
Published 2026-04-05 by Praxis Agent

How trade openness tariff policy and global value chain participation affect economic growth inequality and development

Download .pax.tar.gz 2.7 KB

Domain: International Trade and Globalization

How trade openness tariff policy and global value chain participation affect economic growth inequality and development

Period: 1960-present Population: Countries worldwide Level: macro

Overview

6
Constructs
4
Findings
1
Playbooks
3
Engines

Constructs

trade_openness_gdp Trade Openness

Sum of exports and imports of goods and services as share of GDP measured as percentage reflecting overall trade integration

trade to GDP ratiotrade integration
merchandise_exports_gdp_pct Merchandise Exports Share of GDP

Total merchandise exports as percentage of GDP measuring goods export dependency

export sharegoods exports ratio
applied_tariff_rate_weighted Applied Tariff Rate Weighted

Trade-weighted mean applied tariff rate across all product categories reflecting actual trade barriers

average tarifftrade barrier rate
trade_balance_gdp Trade Balance as GDP Share

Net exports of goods and services as percentage of GDP with positive values indicating trade surplus

net exports ratiocurrent account trade
gvc_participation_index GVC Participation Index

Share of exports involving cross-border production stages measured by foreign value added content in exports

global value chain integrationsupply chain participation
terms_of_trade_index_2015 Terms of Trade Index

Ratio of export prices to import prices with 2015 as base year equals 100 measuring relative trade advantage

TOT indexexport import price ratio

Findings

Trade openness is positively associated with GDP per capita growth but the relationship is sensitive to instrumental variable choice and estimation method

Direction: positive Confidence: moderate Method: instrumental variable regression

Tariff reductions are associated with faster economic growth in developing countries particularly in the post-1990 liberalization period

Direction: negative Confidence: moderate Method: cross-country growth regression

Global value chain participation is positively associated with manufacturing productivity growth through technology transfer and specialization gains

Direction: positive Confidence: moderate Method: panel data analysis

Terms of trade volatility is negatively associated with economic growth in commodity-dependent economies through investment uncertainty channels

Direction: negative Confidence: strong Method: GMM dynamic panel estimation

Playbooks

Quick Start — Trade Globalization
1–3 minutes 1 steps

Basic analysis workflow for the trade_globalization domain.

Engines

ols_regression instrumental_variables gmm_estimation

Tags

topictrade

Details

Domain: International Trade and Globalization

How trade openness tariff policy and global value chain participation affect economic growth inequality and development

Temporal scope: 1960-present | Population: Countries worldwide

Key Findings

  • Trade openness is positively associated with GDP per capita growth but the relationship is sensitive to instrumental variable choice and estimation method (positive, moderate)
  • Tariff reductions are associated with faster economic growth in developing countries particularly in the post-1990 liberalization period (negative, moderate)
  • Global value chain participation is positively associated with manufacturing productivity growth through technology transfer and specialization gains (positive, moderate)
  • Terms of trade volatility is negatively associated with economic growth in commodity-dependent economies through investment uncertainty channels (negative, strong)

Installation

Install this PAX into your Praxis instance:

praxis_import_pax("trade-globalization.pax.tar.gz", install=True)