Which economic theory opposes protectionism?

The economic theory that opposes protectionism is neo-classical economics. This theory advocates for free markets and minimal government intervention in the economy, emphasizing that free trade leads to greater efficiency and economic welfare. Neo-classical economists argue that protectionist measures, such as tariffs and quotas, distort market mechanisms, leading to inefficiencies, higher prices for consumers, and a misallocation of resources. They believe that when countries engage in free trade, they can specialize in the production of goods and services in which they have a comparative advantage, leading to an overall increase in wealth and better outcomes for consumers globally.

In contrast, mercantilism supports protectionist policies as it emphasizes trade surpluses and the accumulation of resources, while Keynesian economics focuses on government intervention to manage economic cycles. Behavioral economics, on the other hand, studies the psychology behind economic decision-making and does not specifically advocate for or against protectionism. Thus, neo-classical economics stands out as the theory that fundamentally opposes protectionism, advocating for free trade as a driver of economic growth and efficiency.