Globalization and the Implications for Trade- Readiness of Small Developing Countries: The Case of Trinidad and Tobago
This paper uses the model of the new growth theory to evaluate whether or not Trinidad and Tobago can develop a sustainable path of development in the non-oil sectors that would lead to increased trade with the rest of the world. It is proposed that Trinidad and Tobago's manufacturing sectors may be able to flourish in the global economy if it is able to make use of the technology presently available globally, as well as create and sustain some degree of knowledge creation. A review of the literature shows that developing countries like Trinidad and Tobago can exist and participate in the global economic arena, if they adopt the philosophies and practices that have been advanced by the new growth theories, specifically the endogenous growth theory. This paper postulates that economic growth can be attained if there is sufficient levels of research and development (R&D) applied to the productive process, and this needs to be expressed not only at the level of the firm, but throughout the economy as a whole.