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Quotation of the Day…

… is from page 123 of Columbia University economics professor Arvind Panagariya’s excellent forthcoming book, Free Trade and Prosperity (footnote excluded):

At the aggregate level, this chapter has marshaled very substantial evidence connecting growth and trade openness. Even econometric studies have come a long way toward establishing causation between trade and per capita GDP. Free trade critics, on the other hand, have provided nothing that comes even close to this evidence in support of their case. Their argument that the experience during the 1960s and 1970s demonstrates the superiority of import substitution over outward orientation fails miserably: it is in fact the post-trade-liberalization era of the 1990s and 2000s that exhibits the highest growth rates in the developing countries taken together.