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Trade liberalisation and export performance in selected developing countries

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Amelia Santos-Paulino

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Abstract

This article examines the impact of trade liberalisation on export growth for a sample of 22 developing economies. The research applies dynamic panel data models based on fixed-effects and generalised methods of moments (GMM) estimators. In addition, heterogeneous panels for the complete sample, as well as for different regions of the world, are estimated using a time-series/cross-section technique. The main findings are that trade liberalisation is a significant determinant of export performance, but its effect varies across continents. Export duties have a small detrimental effect on export growth, while relative price changes and world income growth have the expected signs.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 39 (2002)
Issue (Month): 1 (January)
Pages: 140-164
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Handle: RePEc:taf:jdevst:v:39:y:2002:i:1:p:140-164

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References listed on IDEAS
Please 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.:
  1. Krugman, Paul R, 1987. "Is Free Trade Passe?," Journal of Economic Perspectives, American Economic Association, vol. 1(2), pages 131-44, Fall. [Downloadable!] (restricted)
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June. [Downloadable!] (restricted)
  4. Rodrik, Dani, 1986. "Tariffs, subsidies, and welfare with endogenous policy," Journal of International Economics, Elsevier, vol. 21(3-4), pages 285-299, November. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
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  6. Krueger, Anne O, 1998. "Why Trade Liberalisation Is Good for Growth," Economic Journal, Royal Economic Society, vol. 108(450), pages 1513-22, September. [Downloadable!] (restricted)
  7. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October. [Downloadable!] (restricted)
  8. Grossman, Gene M. & Helpman, Elhanan, 1995. "Technology and trade," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 25, pages 1279-1337 Elsevier. [Downloadable!] (restricted)
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  9. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-55, December. [Downloadable!] (restricted)
  10. Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Oxford University Press, vol. 6(3), pages 335-76, October.
  12. Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Rodrik, Dani, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter. [Downloadable!] (restricted)
  14. Dani Rodrik, 1998. "Trade Policy and Economic Performance in Sub-Saharan Africa," NBER Working Papers 6562, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November. [Downloadable!] (restricted)
  16. Goldstein, Morris & Khan, Mohsin S., 1985. "Income and price effects in foreign trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 20, pages 1041-1105 Elsevier. [Downloadable!] (restricted)
  17. Paul Collier & Jan Willem Gunning, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March. [Downloadable!] (restricted)
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  18. Mayer, Wolfgang & Riezman, Raymond G., 1987. "Endogenous choice of trade policy instruments," Journal of International Economics, Elsevier, vol. 23(3-4), pages 377-381, November. [Downloadable!] (restricted)
  19. Mohsin S. Khan & Morris Goldstein, 1982. "Effects of Slowdown in Industrial Countries on Growth in Non-Oil Developing Countries," IMF Occasional Papers 12, International Monetary Fund.
  20. Harris, M.N. & Matyas, L., 1996. "A Comparative Analysis of Different Estimatiors for Dynamic Panel data Models," Monash Econometrics and Business Statistics Working Papers 4/96, Monash University, Department of Econometrics and Business Statistics.
  21. Greenaway, David & Sapsford, David, 1994. "Exports, growth, and liberalization: An evaluation," Journal of Policy Modeling, Elsevier, vol. 16(2), pages 165-186, April. [Downloadable!] (restricted)
  22. David Greenaway & David Sapsford, . "What does Liberalisation do for Exports and Growth?," Working Papers ec4/94, Department of Economics, University of Lancaster.
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  23. Goldstein, Morris & Khan, Mohsin S, 1978. "The Supply and Demand for Exports: A Simultaneous Approach," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 275-86, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please 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.)

  1. Guariglia, Alessandra & Santos-Paulino, Amelia U., 2008. "Export Productivity, Finance, and Economic Growth: Are the Southern Engines of Growth Different?," Working Papers RP2008/27, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Titus O. Awokuse & Conrado M. Gempesaw II, 2005. "Foreign political instability and U.S. agricultural exports: evidence from panel data," Economics Bulletin, Economics Bulletin, vol. 6(15), pages 1-12. [Downloadable!]
  3. Chris Jones & Oliver Morrissey, . "Are Imports in Africa Responsive to Tariff Reductions?," Discussion Papers 08/02, University of Nottingham, CREDIT. [Downloadable!]
  4. Santos-Paulino, Amelia U., 2008. "Export Productivity and Specialization in China, Brazil, India and South Africa," Working Papers RP2008/28, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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