Why do skills and trade matter?

Over recent decades the global economy has experienced a profound transformation, mostly as a result of the joint forces of trade integration and technological progress, combined with important political changes. There is no doubt that this transformation has been accompanied by significant positive effects at the global level. Increased trade integration has helped to raise incomes in advanced and developing economies, lifting millions out of poverty. Since the global financial crisis of 2007–08, however, trade, productivity and income growth have decelerated, partly because of a slowdown in the pace of trade reforms fuelled by a change in attitudes towards globalization and trade.