The development of international trade can provide the ground for economic growth of a country. In this research we have tried to examine the impact of trade liberalization on economic growth in two groups of developed and developing countries to account for the development level as well as income level of countries using the Sachs–Warner index of trade liberalization during 1985-2014. The results of Houseman-Taylor (HT) estimation indicate that liberalization has a positive impact on the growth of per capita GDP; however the extent of this impact differs to the stage of economic development and income level of a country .The findings also indicate that developed countries are in less advantageous position due to liberalization compared to developing countries
