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3. This policy brief is intended to provide policymakers with a summary of the results of our research project entitled Trade, Growth and Economic Inequality
3. This policy brief is intended to provide policymakers with a summary of the results of our research project entitled "Trade, Growth and Economic Inequality in the Asia-Pacific Region", which explores and documents the linkages between international trade and inequality in the Asia-Pacific Region (APR). The project's eleven research papers will appear in a special issue of the Journal of Asian Economics in February 2017. Our main takeaway for policymakers is to be wary of both anti-trade and pro-trade advocates who provide "one size fits all" advice related to trade, FDI and inequality; these economic relationships are much too complex for that. Source: Greaney, T., & Karacaovali, B. (2016). Trade, Growth and Economic Inequality in the AsiaPacific Region: Lessons for Policymakers (No. 201624). The abstract highlights that different countries would experience different outcomes although implementing similar measures. In extending this analysis we can therefore conclude that the impact of economic growth on trade need not be always positive. Do you agree with this statement? Hint: Your discussion should include the production and consumption effects and support your answers with appropriate diagrams. (20 marks)
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