The empirics of trade and growth: where are the policy recommendations?
Abstract
Existing literature repeatedly documented a strong correlation between trade and growth. It has also shown a causal effect of imports (though not necessarily exports) on growth in simultaneous equation models but to a lesser extent in Granger-causality tests. Export and import taxes have sometimes been found to negatively affect growth. Drawing policy conclusions from these general findings for a particular country is difficult not only because of the contradictory results but also because of potential second best world effects and the implied endogeneity of trade policy. Policy recommendations for a specific country require a careful analysis of market and institutional arrangements and can not be based on the existing cross-country literature. Copyright Springer-Verlag Berlin Heidelberg 2004Download Info
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Bibliographic Info
Article provided by Springer in its journal International Economics and Economic Policy.
Volume (Year): 1 (2004)
Issue (Month): 2 (January)
Pages: 275-292
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Web page: http://www.springerlink.com/link.asp?id=111059
Related research
Keywords: Theoretical and Empirical Trade and Growth Studies; Policy Recommendations; F13 Commercial Policy; Protection; Promotion; Trade Negotiations; O1 Economic Development;Other versions of this item:
- Wälde, Klaus & Wood, Christina, 2000. "The empirics of trade and growth: Where are the policy recommendations?," Dresden Discussion Paper Series in Economics 09/00, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- Klaus W�lde & Christina Wood, 2004. "The empirics of trade and growth: where are the policy recommendations?," European Economy - Economic Papers 204, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Klaus, WAELDE & Christina, WOOD, 2004. "The Empirics of Trade and Growth : Where are the Policy Recommendations ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Guisan, M.C. & Exposito, P., 2006. "Production by sector in China, India and OECD Countries, 1985-2005," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(2).
- Grieben, Wolf-Heimo & Sener, Fuat, 2009. "Globalization, rent protection institutions, and going alone in freeing trade," European Economic Review, Elsevier, vol. 53(8), pages 1042-1065, November.
- Scott L. Baier & Jeffrey H. Bergstrand, 2004. "Trade agreements and trade flows: Estimating the effect of free trade agreements on trade flows with an application to the European Union," European Economy - Economic Papers 214, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- M. Taner Yigit & Ali M. Kutan, 2004.
"European Integration, Productivity Growth and Real Convergence,"
Departmental Working Papers
0402, Bilkent University, Department of Economics.
- Kutan, Ali M. & Yigit, Taner M., 2007. "European integration, productivity growth and real convergence," European Economic Review, Elsevier, vol. 51(6), pages 1370-1395, August.
- Yigit, Taner M. & Kutan, Ali M., 2004. "European integration, productivity growth and real convergence," ZEI Working Papers B 08-2004, ZEI - Center for European Integration Studies, University of Bonn.
- Guisan, M.C. & Exposito, P., 2005. "Industry and Foreign Trade in India, China and OECD countries: an analysis of causality, 1960-2002," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(3), pages 5-16.
- Wälde, Klaus, 2000. "Does trade cause growth? A policy perspective," Dresden Discussion Paper Series in Economics 10/00, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
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