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Trade Openness and Economic Growth: Evidence in East Asia and Latin America

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  • Chen, Been-Lon

    ()
    (Academia Sinica)

Abstract

The past two decades have witnessed economic growth differentials among countries in East Asia and Latin America. In this paper we argue that the degree of openness due to government policies in both areas may be an important factor yielding this result. We construct a simple model to highlight positive association between trade openness and economic growth, and then use a sample of thirt-four countries in the area to test the relationship, after controlling for other common variables of economic growth. As there is no universal harmonious measure of openness, we use an array of five measures, including quantitative price and qualitative measures. The empirical results are Supportive of our conjecture, both in significance and in magnitude.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 14 (1999)
Issue (Month): ()
Pages: 265-295

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Handle: RePEc:ris:integr:0105

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Web page: http://econo.sejong.ac.kr/
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Related research

Keywords: East Asia; Latin America; trade openness; international Trade; economic growth;

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Cited by:
  1. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  2. Ansgar Belke & Lars Wang, 2006. "The Degree of Openness to Intra-Regional Trade Towards Value-Added Based Openness Measures," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(2), pages 115-138, March.
  3. Stefano Chiarlone & Alessia Amighini, 2000. "Any Sequel to the "Miracle"? Growth Potential in East Asia: Evidence from International Trade Flows," KITeS Working Papers 123, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2000.

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