Trade Policies and Economic Growth

Abstract Trade policies play a crucial role in shaping the economic growth of nation by influencing production efficiency, market access, and global competitiveness. This research’s purpose is to analyze the relationship between trade policies and economic growth. It explores how trade liberalization, tariffs, export promotion, and trade agreements affects both developed and developing countries. It highlights the conditions under which trade policies can support inclusive and sustainable economic development. This paper also highlights the challenges associated with protectionist policies, including market distortions and reduced growth potential, while recognizing their short-term role in safeguarding domestic industries. The study finds that open and well-planned policies generally support economic growth, especially when supported by good infrastructure, education and strong institutions.