IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v39y2002i2p137-154.html
   My bibliography  Save this article

The Trade-Induced Learning Effect on Growth: Cross-Country Evidence

Author

Listed:
  • Y-c. Chuang

Abstract

One of the important trade effects on growth is technology diffusion through learning by doing. Chuang [1998] proposed a trade-induced learning theory in which the nature of traded goods and the trading partners are two key factors determining the effectiveness of the trade-induced learning. The former conveys the characteristics that a country can learn; the latter determines the level of technology from which a country can learn. Using cross-country data, this article constructs a set of the trade-induced learning variables by taking into account trading partners and the characteristics of the traded goods and further tests the trade-induced learning hypothesis. The results show that holding other variables constant, trade-induced learning has a positive and significant effect on growth and the estimated effect implies that a one-standard-deviation increase in the trade-induced learning variable is estimated to generate an effect of between 0.4 to 1.0 percentage points on the annual growth rate. Robustness test shows that the trade-induced learning variable passes the extreme-bound analysis and also outperforms other conventional trade variables advocated in the literature.

Suggested Citation

  • Y-c. Chuang, 2002. "The Trade-Induced Learning Effect on Growth: Cross-Country Evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 137-154.
  • Handle: RePEc:taf:jdevst:v:39:y:2002:i:2:p:137-154
    DOI: 10.1080/00220380412331322781
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380412331322781
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00220380412331322781?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kumar, Sushil & Ahmed, Shahid, 2014. "Growth and Pattern of Intra-Industry Trade between India and Bangladesh: 1975–2010," MPRA Paper 61113, University Library of Munich, Germany, revised 29 Dec 2014.
    2. Shahid Ahmed & Sushil Kumar, 2014. "Impact of Sensitive Lists under SAFTA: Quantitative Assessment using a Partial Equilibrium Modeling," 2014 Papers pah96, Job Market Papers.
    3. Aristea Gkagka & Grigoris Zarotiadis, 2011. "Growth and EU Trade Relations: A Case Study," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 9(1), pages 1-11.
    4. Emine KILAVUZ & Bet l ALTAY TOPCU, 2012. "Export and Economic Growth in the Case of the Manufacturing Industry: Panel Data Analysis of Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 201-215.
    5. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    6. Vergil , Hasan & Sinay, Mehmet, 2013. "An Investigation of the Relationship between Foreign Trade and Economic Growth in terms of Knowledge Transfer: The Case of Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 4(1), pages 1-59, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:39:y:2002:i:2:p:137-154. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.