November 12, 2009

The contribution of trade policy to the openness of the Dutch economy

Handelsbeleid levert de Nederlandse burger jaarlijks gemiddeld zo'n 1400 euro op

Press release

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Foto Arjan Lejour
Arjan Lejour +31 6 52485843 Read more
Dick Morks Read more

Trade policy, consisting of reductions in import tariffs and other trade barriers and the creation of the EU internal market, also has a significant impact on trade growth, although much smaller. Without any liberalisation of trade policy since 1970 the ratio of trade (excluding re-exports) to GDP would have been about 8%- points lower.

By estimating the trade enhancing-effect of trade policy on GDP we conclude that trade policy has contributed 6% to 8% to the growth of national income in Netherlands since the 1970s. Foreign Direct Investments (FDI) experienced a massive but erratic growth, mostly in the last two decades. Income developments could explain half of that growth; deregulations of national capital markets explain only a small part of FDI growth.


Harold Creusen Read more
Foto Arjan Lejour
Arjan Lejour +31 6 52485843 Read more