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Trade orientation measurement and consequences

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  • Holger C. Wolf
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    Abstract

    New trade theory and endogenous growth models have revived the debate on the static and dynamic implications of trade orientation. Alas, a decade of models has produced more ambiguity than clarity, placing a premium on empirical work. Unfortunately, existing indices of trade orientation invite substantial criticism. In the first part of the paper we construct a new measure, based on the difference between actual trade and the trade levels predicted by a factor endowments mode. In the second part, we use the index to examine the link between trade orientation and economic growth.

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    File URL: http://www.econ.uchile.cl/uploads/publicacion/11fece2a-e9a3-4e15-b2fa-c2e69d247cd4.pdf
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    Bibliographic Info

    Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

    Volume (Year): 20 (1993)
    Issue (Month): esp Year 1993 (june)
    Pages: 49-86

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    Handle: RePEc:udc:esteco:v:20:y:1993:i:esp:p:49-86

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    Web page: http://www.econ.uchile.cl/
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    Cited by:
    1. Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
    2. Mihir Pandey, 2004. "Impact of trade liberalisation in manufacturing industry in India in the 1980s and 1990s," Indian Council for Research on International Economic Relations, New Delhi Working Papers 140, Indian Council for Research on International Economic Relations, New Delhi, India.
    3. Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
    4. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.

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