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Trade orientation measurement and consequences

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  • Holger C. Wolf

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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  • Holger C. Wolf, 1993. "Trade orientation measurement and consequences," Estudios de Economia, University of Chile, Department of Economics, vol. 20(esp Year ), pages 49-86, june.
    • Handle: RePEc:udc:esteco:v:20:y:1993:i:esp:p:49-86
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    Cited by:

    1. Sebastián Edwards, 1996. "Economic policy and the dynamics of growth," Estudios de Economia, University of Chile, Department of Economics, vol. 23(2 Year 19), pages 137-155, December.
    2. Satya Paul & Andrew Marks, 2009. "Modelling Productivity Effects Of Trade Openness: A Dual Approach," Australian Economic Papers, Wiley Blackwell, vol. 48(2), pages 105-123, June.
    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. Rivera, Sandra A. & Tsigas, Marinos E., 2005. "How does China’s growth affect India? An Economywide Analysis," Conference papers 331359, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Amelia U. Santos‐Paulino, 2005. "Trade Liberalisation and Economic Performance: Theory and Evidence for Developing Countries," The World Economy, Wiley Blackwell, vol. 28(6), pages 783-821, June.
    6. Dibyendu Maiti & Sugata Marjit, 2009. "Regional Openness, Income Growth And Disparity Across Major Indian States During 1980-2004," Development Economics Working Papers 22927, East Asian Bureau of Economic Research.
    7. Dominique Hachette & Fernando Ossa & Francisco Rosende, 1996. "Aspectos Monetarios y Macroeconómicos de la Integración," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(98), pages 153-183.
    8. Julian P. Christ & Patricia Hofmann, 2010. "International Openness and Patent Activity: First Descriptive Results Very preliminary draft," DEGIT Conference Papers c015_055, DEGIT, Dynamics, Economic Growth, and International Trade.
    9. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    10. Francisco Rodríguez & 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.
    11. 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.

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