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Some Benefits of Free Trade

Created on October 7, 2011

Some Benefits of Free Trade

Some Benefits of Free Trade

• GDP per capita:The World Bank, “GDP per Capita (Current U.S.$),” at http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countries (September 12, 2011). Figures based on 180 countries.

• Global hunger: International Food Policy Research Institute, “2010 Global Hunger Index,” October 11, 2010, at http://www.ifpri.org/publication/2010-global- hunger-index (September 12, 2011). Figures based on 122 countries.

• Environmental performance: Yale University, Center for Environmental Law & Policy, and Columbia University, Center for International Earth Science Information Network, Environmental Performance Index 2010, at http://epi.yale.edu/ (September 12, 2011).

We divided the nations of the world into four groups based on their trade freedom score in the 2012 Index of Economic Freedom, then compiled each group’s average in three other key variables. The chart below shows that nations with more trade freedom also have ...

Chart 3 • B 2614


... Better treatment of the environment

Environmental Performance Index

(higher scores mean greater performance)

... Less hunger

Global Hunger Index

(lower scores mean less hunger)

Trade Freedom Score Groups

... Stronger economies

Average Per Capita GDP

Sources: Heritage Foundation calculations from the 2012 Index of Economic Freedom (forthcoming January 2012) and: