Abstract:

During the recent history that marked the western world, governments of major countries have adopted successively and to some extent cyclical protectionist trade policies against foreign countries, as well as measures for liberalization of international trade. The economic theory developed after Adam Smith reveals many advocates of protectionist measures (aiming to protect industries against foreign competition, additional budget revenues, etc.) as well as numerous supporters of free trade (the intended purpose being the efficient allocation of resources, price reduction, benefits from economies of scale, etc.). The "Great Depression" of the '30s and the “Great Depression" of 2008 requires to economic theory to formulate questions and new connections. Some empirical studies try to argue that there is a partial correlation between alternation of economic cycles (Kondratieff, decennial, etc.) and an alternation of periods/cycles of free trade and protectionism promoted through trade policies pursued by various countries. How true is an assertion of this kind?