Free Trade, Growth, and Convergence
Abstract
Can trade liberalization have a permanent affect on output levels, and more important, does it have an impact on steady-state growth rates? The model emphasizes the role that knowledge spillovers emanating from heightened trade can have on income convergence and growth rates during transition and over the long run. Among the results of the model, unilateral liberalization by one country reduces the income gap between the liberalizing country and other, wealthier countries. From the long-run growth perspective, unilateral (and multilateral) liberalization generates a positive impact on the steady-state growth of all the trading countries. Copyright 1998 by Kluwer Academic PublishersDownload Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Springer in its journal Journal of Economic Growth.
Volume (Year): 3 (1998)
Issue (Month): 2 (June)
Pages: 143-70
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102931
Related research
Keywords:Other versions of this item:
- Dan Ben-David & Michael B. Loewy, 1997. "Free Trade, Growth, and Convergence," NBER Working Papers 6095, National Bureau of Economic Research, Inc.
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- F1 - International Economics - - Trade
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Par Hansson & Magnus Henrekson, 1994. "What makes a country socially capable of catching up?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(4), pages 760-783, December.
- Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Motta, Massimo & Thisse, Jacques-François & Cabrales, Antonio, .
"On the persistence of leadership or leapfrogging in international trade,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/3683, Universidad Carlos III de Madrid.
- Motta, Massimo & Thisse, Jacques-Francois & Cabrales, Antonio, 1997. "On the Persistence of Leadership or Leapfrogging in International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 809-24, November.
- Cabrales, Antonio & Motta, Massimo & Thisse, Jacques-François, . "On the Persistence of Leadership or Leapfrogging in International Trade," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/3512, Universidad Carlos III de Madrid.
- Massimo MOTTA & Jean-François THISSE & Antonio CABRALES, 1996. "On the Persistence of Leadership or Leapfrogging in International Trade," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9625, Université de Lausanne, Faculté des HEC, DEEP.
- Cabrales, Antonio & Motta, Massimo & Thisse, Jacques-François, 1995. "On the Persistence of Leadership or Leapfrogging in International Trade," CEPR Discussion Papers 1106, C.E.P.R. Discussion Papers.
- Feenstra, R.C., 1990.
"Trade And Uneven Growth,"
Papers
353, California Davis - Institute of Governmental Affairs.
- Feenstra, Robert C., 1996. "Trade and uneven growth," Journal of Development Economics, Elsevier, vol. 49(1), pages 229-256, April.
- Robert C. Feenstra, 1990. "Trade and Uneven Growth," NBER Working Papers 3276, National Bureau of Economic Research, Inc.
- Roy J. Ruffin, 1993. "Endogenous growth and international trade," Research Paper 9332, Federal Reserve Bank of Dallas.
- Dan Ben-David & David H. Papell, 1998.
"Slowdowns And Meltdowns: Postwar Growth Evidence From 74 Countries,"
The Review of Economics and Statistics,
MIT Press, vol. 80(4), pages 561-571, November.
- Dan Ben-David & David H. Papell, 1997. "Slowdowns and Meltdowns: Postwar Growth Evidence from 74 Countries," NBER Working Papers 6266, National Bureau of Economic Research, Inc.
- Ben-David, D. & Papell, D.H., 1996. "Slowdowns and Meltdowns: Post-War Growth Evidence from 74 Countries," Papers 9-96, Tel Aviv.
- Ben-David, Dan & Papell, David, 1995. "Slowdowns and Meltdowns: Post-war Growth Evidence from 74 Countries," CEPR Discussion Papers 1111, C.E.P.R. Discussion Papers.
- David M. Gould & Roy J. Ruffin & Graeme L. Woodbridge, 1993. "The theory and practice of free trade," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Dec, pages 1-16.
- Marin, Dalia, 1995.
"Learning and Dynamic Comparative Advantage: Lessons from Austria's Postwar Pattern of Growth for Eastern Europe,"
Discussion Papers in Economics
610, University of Munich, Department of Economics.
- Marin, Dalia, 1995. "Learning and Dynamic Comparative Advantage: Lessons from Austria's Post-war Pattern of Growth for Eastern Europe," CEPR Discussion Papers 1116, C.E.P.R. Discussion Papers.
- Matthew J. Slaughter, 1997. "Per Capita Income Convergence and the Role of International Trade," NBER Working Papers 5897, National Bureau of Economic Research, Inc.
- Ben-David, Dan, 1995.
"Trade and Convergence Among Countries,"
CEPR Discussion Papers
1126, C.E.P.R. Discussion Papers.
- Ben-David, Dan, 1996. "Trade and convergence among countries," Journal of International Economics, Elsevier, vol. 40(3-4), pages 279-298, May.
- Ben-David, D., 1995. "Trade and Convergence Among Countries," Papers 35-95, Tel Aviv.
- Elhanan Helpman & David T. Coe & Alexander W. Hoffmaister, 1994.
"North-South R&D Spillovers,"
IMF Working Papers
94/144, International Monetary Fund.
- Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January.
- Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander, 1995. "North-South R&D Spillovers," CEPR Discussion Papers 1133, C.E.P.R. Discussion Papers.
- David T. Coe & Elhanan Helpman & Alexander Hoffmaister, 1995. "North-South R&D Spillovers," NBER Working Papers 5048, National Bureau of Economic Research, Inc.
- J. Bradford DeLong & Lawrence H. Summers, 1992.
"Macroeconomic policy and long-run growth,"
Economic Review,
Federal Reserve Bank of Kansas City, issue Q IV, pages 5-29.
- J. Bradford DeLong & Lawrence H. Summers, 1992. "Macroeconomic policy and long-run growth," Proceedings, Federal Reserve Bank of Kansas City, pages 93-148.
- J. Bradford De Long & Lawrence H. Summers, . "Macroeconomic Policy and Long-Run Growth," J. Bradford De Long's Working Papers _113, University of California at Berkeley, Economics Department.
- Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
- Luis A. Rivera-Batiz & Paul M. Romer, 1990.
"Economic Integration and Endogenous Growth,"
NBER Working Papers
3528, National Bureau of Economic Research, Inc.
- Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May.
- Griliches, Zvi, 1980.
"R & D and the Productivity Slowdown,"
American Economic Review,
American Economic Association, vol. 70(2), pages 343-48, May.
- Zvi Griliches, 1980. "R&D and the Productivity Slowdown," NBER Working Papers 0434, National Bureau of Economic Research, Inc.
- Ben-David, D. & Papell, D.H., 1995. "The Great War, The Great Crash and Steady State Growth: Some New Evidence an Old Stylized Fact," Papers 36-95, Tel Aviv - the Sackler Institute of Economic Studies.
- David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992.
"In search of scale effects in trade and growth,"
Staff Report
152, Federal Reserve Bank of Minneapolis.
- Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992. "In search of scale effects in trade and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 377-409, December.
- Jonathan Eaton & Samuel Kortum, 1994.
"International Patenting and Technology Diffusion,"
NBER Working Papers
4931, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Samuel Kortum, 1994. "International Patenting and Technology Diffusion," Boston University - Institute for Economic Development 50, Boston University, Institute for Economic Development.
- Jonathan Eaton & Samuel Kortum, 1994. "International patenting and technology diffusion," Finance and Economics Discussion Series 94-35, Board of Governors of the Federal Reserve System (U.S.).
- Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
- Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
- Stokey, Nancy L, 1991.
"The Volume and Composition of Trade between Rich and Poor Countries,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(1), pages 63-80, January.
- Nancy L. Stokey, 1989. "The Volume and Composition of Trade Between Rich and Poor Countries," Discussion Papers 849, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Paul Romer, 1991.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
- Dan Ben-David & David H. Papell, 1997.
"International Trade and Structural Change,"
NBER Working Papers
6096, National Bureau of Economic Research, Inc.
- Ben-David, Dan & Papell, David H., 1997. "International trade and structural change," Journal of International Economics, Elsevier, vol. 43(3-4), pages 513-523, November.
- Ben-David, D., 1995.
"Convergence Clubs and Diverging Economies,"
Papers
40-95, Tel Aviv.
- Ben-David, Dan, 1994. "Convergence Clubs and Diverging Economies," CEPR Discussion Papers 922, C.E.P.R. Discussion Papers.
- Ben-David, Dan & Loewy, Michael B, 1996.
"Knowledge Dissemination, Capital Accumulation, Trade and Endogenous Growth,"
CEPR Discussion Papers
1335, C.E.P.R. Discussion Papers.
- Ben-David, Dan & Loewy, Michael B, 2000. "Knowledge Dissemination, Capital Accumulation, Trade, and Endogenous Growth," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 637-50, October.
- Ben-David, D & Loewy, M-B, 1997. "Knowledge Dissemination, Capital Accumulation, Trade, and Endogenous Growth," Papers 3-97, Tel Aviv - the Sackler Institute of Economic Studies.
- Bruno, Michael, 1984. "Raw Materials, Profits, and the Productivity Slowdown," The Quarterly Journal of Economics, MIT Press, vol. 99(1), pages 1-29, February.
- Jones, Larry E & Manuelli, Rodolfo E, 1990. "A Convex Model of Equilibrium Growth: Theory and Policy Implications," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1008-38, October.
- Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
- Romer, Paul, 1994.
"New goods, old theory, and the welfare costs of trade restrictions,"
Journal of Development Economics,
Elsevier, vol. 43(1), pages 5-38, February.
- Paul M. Romer, 1994. "New Goods, Old Theory, and the Welfare Costs of Trade Restrictions," NBER Working Papers 4452, National Bureau of Economic Research, Inc.
- Jeffrey D. Sachs & Andrew Warner, 1995.
"Economic Reform and the Process of Global Integration,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
- Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
- Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
- Paul M. Romer, 1987. "Crazy Explanations for the Productivity Slowdown," NBER Chapters, in: NBER Macroeconomics Annual 1987, Volume 2, pages 163-210 National Bureau of Economic Research, Inc.
- Richard E. Baldwin, 1992. "On the Growth Effects of Import Competition," NBER Working Papers 4045, National Bureau of Economic Research, Inc.
- Harrison, Ann, 1996.
"Openness and growth: A time-series, cross-country analysis for developing countries,"
Journal of Development Economics,
Elsevier, vol. 48(2), pages 419-447, March.
- Harrison, Ann, 1991. "Openness and growth : a time series, cross-country analysis for developing countries," Policy Research Working Paper Series 809, The World Bank.
- Ann Harrison, 1995. "Openness and Growth: A Time-Series, Cross-Country Analysis for Developing Countries," NBER Working Papers 5221, National Bureau of Economic Research, Inc.
- Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
- Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-19, December.
- Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-93, September.
- Slaughter, Matthew J, 1997. "Per Capita Income Convergence and the Role of International Trade," American Economic Review, American Economic Association, vol. 87(2), pages 194-99, May.
- Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
- Luis A. Rivera-Batiz & Paul M. Romer, 1992.
"International Trade with Endogenous Technological Change,"
NBER Working Papers
3594, National Bureau of Economic Research, Inc.
- Rivera-Batiz, Luis A. & Romer, Paul M., 1991. "International trade with endogenous technological change," European Economic Review, Elsevier, vol. 35(4), pages 971-1001, May.
- Sebastian Edwards, 1991.
"Trade Orientation, Distortions and Growth in Developing Countries,"
NBER Working Papers
3716, National Bureau of Economic Research, Inc.
- Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
- Ben-David, Dan & Papell, David H., 1995. "The great wars, the great crash, and steady state growth: Some new evidence about an old stylized fact," Journal of Monetary Economics, Elsevier, vol. 36(3), pages 453-475, December.
- Ram, Rati, 1990. "Imports and Economic Growth: A Cross-Country Study," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 43(1), pages 45-66.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.
Lists
This item is featured on the following reading lists or Wikipedia pages:Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:kap:jecgro:v:3:y:1998:i:2:p:143-70For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

