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Does Bilateral Trade Lead To Income Convergence? Panel Evidence

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  • Changkyu Choi

    ()
    (Economics Department, Myongji University)

Abstract

Through panel-data regressions, we found that both per capita income level and growth turn out to converge when the trade intensity ratio increases between the countries. Geographical proximity and language similarities also turn out to be associated with convergence in both income level and growth.

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Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 34 (2009)
Issue (Month): 1 (June)
Pages: 71-79

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Handle: RePEc:jed:journl:v:34:y:2009:i:1:p:71-79

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Related research

Keywords: Trade; Convergence; Distance; Language;

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  1. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
  2. Changkyu Choi, 2004. "Foreign direct investment and income convergence," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1045-1049.
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