Systematic Literature Review on Trade Liberalization and Sustainable Development
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Title
Systematic Literature Review on Trade Liberalization and Sustainable DevelopmentDate
2022-08-13Publisher
ElsevierISSN
2352-5509Bibliographic citation
BARROS, Laura; MARTÍNEZ-ZARZOSO, Inmaculada. Systematic literature review on trade liberalization and sustainable development. Sustainable Production and Consumption, 2022Type
info:eu-repo/semantics/articlePublisher version
https://www.sciencedirect.com/science/article/pii/S2352550922002184Version
info:eu-repo/semantics/publishedVersionSubject
Abstract
This paper compiles a systematic review of research papers that identify the effect
of international trade and trade liberalization policies on socio-economic targets
linked to the sustainable development goals ... [+]
This paper compiles a systematic review of research papers that identify the effect
of international trade and trade liberalization policies on socio-economic targets
linked to the sustainable development goals (SDGs). A comprehensive overview of
the existing literature is provided, focusing on papers that identify causality and
covering topics that have not been systematically analyzed previously. While existing
literature reviews have focused on the effects of trade openness on economic growth, its
consequences for other social- and sustainable-related goals have received much less
attention. We restrict the review to social- and sustainability-related SDGs and classify
the empirical findings in four categories. First, we analyze the extent to which trade
affects poverty (SDG-1, 2, 8). The findings indicate that trade increases average
incomes in most cases and that trade reforms that include the agricultural sector
generally reduce poverty. Second, we examine labor market outcomes and analyse
how international trade affects wages, unemployment, and informality (SDGs-1, 5, 8).
We find that with more trade, employment and wages increase in the most dynamic
sectors, but decrease in others with increases in informality in some developing
countries. The third bloc documents papers that evaluate whether trade is goodor
bad for environmental quality, evaluating how trade reforms and increases in
openness affect the environment at the macro and micro level (SDG-3, 7, 11, 12, 15).
The reviewed research indicates that the effects of trade on environmental quality
are complex and depend on the sectors that liberalize and the existence of
environmental standards linked to trade agreements. The fourth category concerns the
effect of trade flows on food security, hence questioning whether opening the
economies could contribute to better performance in SDG-2 and SDG-9. In this area,
the literature is still incipient and deals mainly with correlations. More research is
needed to better define the concept of food security and related indicators and to
collect better data. In summary, this systematic review should guide policymakers in
developing countries in the decision-making process related to trade and industrial
policies. The main recommendation is to consider the main findings when designing
new trade policy strategies concerning both unilateral trade liberalization and free
trade agreements negotiations. [-]
Is part of
Sustainable Production and Consumption, 2022Funder Name
Agencia Estatal de Investigación | Universitat Jaume I | German Corporation for International Cooperation
Project code
PID2020-114646RB-C42 | AEI 10.13039/501100011033 | UJI-B2020-57
Rights
info:eu-repo/semantics/embargoedAccess
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- ECO_Articles [696]