EXCERPT FROM THE STUDY
Liu, Burridge and Sinclair (2002) examined the relationship between economic growth, foreign direct investment and trade in China. The study found long run relationship between the variables and a bidirectional causality between economic growth, trade and foreign direct investment. In other stimulating study, Weisbrot and Baker (2003) argued that trade may not be the only key to rapid economic growth and development. They noted that the success of some countries that experienced accelerated growth did not follow simple path to trade liberalization because the government directs the economy through the use of subsidies. Ajayi (2003) reports that the removal of barriers to trade has increased the flow of trade by 16 percent fold in the last 50 years, with the world exports of goods and services almost tripled in real terms between 1970 and year 2000.
Abstract
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BACKGROUND OF THE STUDY
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