Commentary: ‘Beggar-Thy-Neighbour’ and International Trade: An Analysis With Policy Recommendations

Abstract

With the growth and expansion of international trade, government policymakers need to formulate policies advancing favourable bilateral trade relations, including a comparative advantage to penetrate export markets. To maintain growth and protect existing trade flows, we are seeing an increase in various protectionist tactics, amongst which is the ‘beggar-thy-neighbour’ approach (gaining an economic advantage at the expense of others). We explore this approach extensively to reveal what makes it so attractive to nations. Can it be justified in the modern global economy? Beggar-Thy-Neighbour, Bilateral Relations, Currency Devaluation, Economies, Government, International Trade, Policy, Protectionist Policies, Tariff, Trade Barriers