Analyzing the Effects of Global Trade Policies on Economic Growth in Developing Countries

Abstract

Global trade policies play a critical role in shaping the economic trajectories of developing countries by influencing market access, investment flows, and competitive positioning. the effects of contemporary global trade policies—such as tariffs, trade agreements, export subsidies, and non-tariff barriers—on economic growth in selected developing nations. Utilizing a combination of panel data analysis and case studies from Asia, Africa, and Latin America, the research assesses the impact of trade liberalization, protectionism, and multilateral agreements on GDP growth, export diversification, and foreign direct investment (FDI). The findings suggest that countries with proactive and strategic engagement in global trade, often facilitated through bilateral and regional trade agreements, experience more robust economic growth. However, the benefits are unevenly distributed, with vulnerable economies facing adverse effects due to dependency on primary exports, limited industrial capacity, and exposure to global price volatility. The study concludes that while global trade policies offer significant opportunities, their success in promoting economic development depends on a country’s institutional strength, domestic reforms, and capacity to integrate into global value chains. Recommendations are provided for policymakers to adopt inclusive trade strategies, strengthen trade facilitation infrastructure, and negotiate favorable terms in international trade forums to maximize economic gains.