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DOI: 10.18413/2408-9346-2020-6-2-0-6

Risks of increasing protectionism in the global economy

After more than two centuries in which economists have pointed out the advantages of free trade over the costs of applying trade restrictions, one of the most significant events marking the beginning of the twenty-first century is the transition from globalization and trade integration to nationalism and protectionism.  The post-crisis persistent weakening of world trade, in clear contrast to the market acceleration of the previous two decades, has been one of the most discussed topics in current global policy discussions. Given the importance of trade for generating innovation, increasing productivity and ultimately stimulating economic growth, a deep understanding of trade trends and prospects is crucial for policy makers. The International Monetary Fund warns that protectionism is increasing and poses a threat to global economic growth. The uncertainty associated with protectionism is putting pressure on the country's economic situation and could undermine and further affect the Eurozone and the global economy. This article examines why the growth of protectionism has re-emerged on the world economic scene, identifies a set of economic and socio-political determinants, and highlights the possible macroeconomic consequences of escalating trade tensions. We propose to consolidate current movements such as Brexit and Euroscepticism that challenge the principles of trade liberalization, generating a growth of sovereign national accents.

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