Economic Openness

Hans Keman

In: Encyclopedia of Governance

Economic Openness

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  • The term economic openness appeared in comparative political economy in the early 1980s. However, as a concept, it has a much longer history, particularly in the field of international economics. Actually, the history of studying the causes and effects of the open economy dates back as far as the eighteenth century and figures prominently in the work of classical economists such as Adam Smith and David Ricardo. These classical economists were concerned about the consequences of international trading on the domestic economy, on the one hand, and the positive and negative effects of free trade, on the other hand. Originally, the focus of analysis was on commodity exchange and exchange rates; at present, the focus is more on the ramifications of economic openness on ...

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