Trade policy and economic growth: cases of Belarus and Lithuania

ENThis paper tries to examine theoretical and empirical literature on the existence of a relationship between trade policies and economic growth. Two transitional economies, Belarus and Lithuania, have been chosen as a basis for the analysis of the effects of the respective trade policies on economic growth. Both economies are small, but their trade policies and rates of economic growth differ. Lithuania enjoys free trade, while Belarus' trade policy is characterized by strong government interference. Rates of economic growth have recently mostly been positive in both economies, but Belarussian have proven stronger than Lithuanian. Nevertheless, neither the policies that helped reach high rates of economic growth in Belarus nor the environment in which they thrived seem to be stable. Thus, should the external conditions change, Belarus impressive growth will likely prove to be unsustainable in the future.