We revisit the relationship between international trade, economic
growth and income inequality. Our cross-country analysis considers the
strength of trade connections as well as characteristics of countries’
export markets and products. We also conduct event studies of past
trade liberalization episodes to extract general lessons for the
impact of trade on economic growth and inequality. Our research points
to two broad messages: First, trade openness and connectivity to the
center of the trade network has substantial macroeconomic benefits.
Second, deeper trade integration is unlikely to be a key driver of
rising income inequality.