Tuesday, May 6, 2014

Epilogue to the article about economic development of Islamic countries (14)

The author writes that,
When an economic potential is not realized, the reasons may be internal failure or external constraint.
Internal or domestic reasons are those for which the domestic government is responsible.
This could be a failure of economic policy, misdirected policy or a failure of implementation due to institutional failure such as corruption.
Any of these internal factors may possibly be related to religious policies or practices.
An external factor may be related to trade, where a country faces barriers to its potential exports, depriving it of financial resources necessary for capital accumulation.
In matters of trade, there are often conflicting economic viewpoints.

Since the contribution of one of the famous economists David Ricardo, it has been recognized that international trade is not just a game of winners and losers.

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