Tariffs and free trade agreements: Strategies for economic growth in Ecuador from the perspective of the Austrian School of economics
DOI:
https://doi.org/10.29076/issn.2528-7737vol18iss49.2025pp139-149pKeywords:
Tariffs, free trade agreements, economic growth, Austrian School of economics, EcuadorAbstract
This article analyzes the effects of tariffs and free trade agreements (FTAs) on Ecuador's economic growth from the perspective of the Austrian School of Economics. Through a literature review and specific case studies, the impact of these trade policies on the economy, local industry, and social welfare is examined. Tariffs, while protecting nascent industries, can distort prices and limit long-term competitiveness. On the other hand, FTAs can foster trade and foreign investment, promoting technological modernization and efficiency, but also pose challenges for small and medium-sized enterprises (SMEs). The study concludes that it is crucial to balance the protection of local industries with openness to international trade, minimizing interventions that distort prices and resource allocation
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References
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