Source: EconLog
by Peter Calcagno & Beatriz Maldonado
“Generally, trade agreements promote trade liberalization, which can have numerous positive effects, including fostering long-term economic growth, increasing foreign investment, and even initiating positive institutional change. Economist Russell Sobel argues that trade openness is a critical first mover in improving economic freedom. Liberalizing trade and improving economic freedom can reduce corruption or generate moral behavior. Corruption reduction could emerge from formal institutional changes (e.g., laws and legislation) or informal ones emerging from increased business with a less corrupt country.” (11/21/25)
https://www.econlib.org/library/columns/y2025/calcagnomaldonadotrade