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Did the trade liberalization of the 1990s really boost economic growth? a critical replication of Estevadeordal and Taylor (2013)

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  • Mateo Hoyos

    (University of Massachusetts Amherst)

Abstract

We show that there is no positive relationship between trade liberalization and economic growth during the Great Liberalization of the 1990s. We replicate Estevadeordal and Taylor (Rev Econom Statist 95:1669, 2013) and find that their estimated positive relationship between trade liberalization and economic growth is not robust. Their results are driven by outliers, internally inconsistent tariff data, inappropriate selection of the treatment year, and their specific data on economic growth.

Suggested Citation

  • Mateo Hoyos, 2022. "Did the trade liberalization of the 1990s really boost economic growth? a critical replication of Estevadeordal and Taylor (2013)," Empirical Economics, Springer, vol. 63(1), pages 525-548, July.
    • Handle: RePEc:spr:empeco:v:63:y:2022:i:1:d:10.1007_s00181-021-02139-8
    DOI: 10.1007/s00181-021-02139-8
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    More about this item

    Keywords

    Trade policy; Tariffs; Trade liberalization; Washington consensus; Economic growth;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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